Italian Bonds Climbed

Italian 10-year yields climbed as much as 10 basis points Thursday to 2.96%, the highest level since Jan. 9.

Italy’s benchmark notes fell for a third day after the European Commission slashed its growth forecast for the nation’s economy to 0.2% from 1.2%. German bunds, which traders view as haven securities, rallied.

“As Italian data remains weak and European parliamentary elections approach, we would not be surprised to hear more euroskeptic voices re-emerge there,” said Sphia Salim, an interest-rate strategist at Bank of America Merill Lynch. It will keep “volatility elevated,” she said.

Reference

Bloomberg, John Ainger & Paul Cohen, 2019-02-07, “Italian Bonds, Euro Decline as Economic Growth Forecasts Are Cut”