Investors await Italian bond sale as Yen holds on

The yen held onto its edge against its major counterparts in Asian trading on Wednesday as investors awaited an Italian bond auction later in the session which could give clues on the direction of the euro.

Italy’s borrowing costs have soared on the back of a political stalemate following its recent election, creating a challenging environment for the country’s sale of new 10-year bonds and five-year paper.

Markets are already uneasy after the election produced no clear winner and the single currency could lose ground again if Italy is forced to pay far higher borrowing costs than before the polls.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.