Italy bonds rally for now

Italy’s government bonds had their best week in more than six years, and yields are at their lowest since 2016, prompting the government to lock in bargains by issuing 50-year debt this week but the driver isn’t budget prudence, but the prospect of ECB moves, providing a guaranteed buyer of Italian debt.

Italy bonds rally for now

Italy’s government bonds had their best week in more than six years, and yields are at their lowest since 2016, prompting the government to lock in bargains by issuing 50-year debt this week but the driver isn’t budget prudence, but the prospect of ECB moves, providing a guaranteed buyer of Italian debt.

The risk is that the market backdrop emboldens deputy prime minister Matteo Salvini to push his aggressive tax cuts. That could revive tensions that roiled the country’s markets after the coalition government took office last summer, particularly as the coming year’s budget will be even tougher.

Already a subscriber? Sign in

You have reached your article limit.

Unlimited access. Half the price.

Annual €120 €60

Best value

Monthly €10€5 / month

More in this section

The Business Hub

Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited