italian bonds

draghi ECB

Super Mario Is Back With The Mission To Turn Italian Crisis Around; But It Won’t Be Easy

Over the weekend, Mario Draghi has managed to obtain a broad majority to form a new coalition government in Italy after winning the support of the Five Star Movement and the ultra-right-wing League. His nomination is a try to turn the country around the virus-induced crisis, since he is a widely respected figure for his important role during the European debt crisis. The yield of the Italian 10-year bond fell last week -11 bps to 0.53% on the expectation of greater political stability in the country (vs. a high of 0.75% this year).

eiffel pisa

Italy’s Response To French Spending May Hurt Euro

Christmas came early this year in France as President Emmanuel Macron handed out gifts to his constituents like an end of the year bonus and a €100 increase of the minimum wage, explicitly not paid by employers. However, the European Union may not join in the celebrative Christmas conga as this spending spree will send the French budget deficit far north of what European budget rules allow.

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 bonds Vs Spanish

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.