italian bonds

Italy's economy entering a crucial period in its Euro membership

The ‘antiestablishment’ pact in Italy augurs a rise in the country’s public deficit

Paula Sampedro (Link Securities) |There are various fronts open on the political front during this week. Specifically, the Italian political parties La Liga (extreme rightwing) and the Movimiento Cinco Estrellas (anti-establishment) are expected to present their programme for government to the country’s president Sergio Mattarella, after reaching an agreement to form a new government in Italy.

 


Italian-Spanish bonds yield spread reaches highest level since 2014

Italy’s sovereign debt has become a bargain due to the country’s upcoming referendum (December 4th) which may compromise Renzi’s government. Yield premium investors demand to hold 10-year securities versus similar Spanish debt soared to its highest closing level in almost two years in October, according to Bloomberg data.