Italian Bond Yields Hit One-Week Low

Italy’s government bond yields fell to a one-week low on Tuesday as shares in its beleaguered banks recovered from recent falls.

Shares in lender Monte dei Paschi di Siena rose 5.5 percent, having ended Monday down over 13 percent, while Italy’s benchmark banking index gained 1.5 percent.

A top bond investor for BlackRock Inc, the world’s largest asset manager, said on Monday he was scaling up exposure to European banks and other financial stocks that have been beaten up by worries over a referendum in Italy that may unseat its prime minister, Matteo Renzi.

Rick Rieder, BlackRock’s chief investment officer of global fixed income, also said he still held exposure to Italian government debt, though at lower levels than in the past.

Italy’s 10-year government bond yields fell as much as 4 basis points to a one-week low of 2.02 percent, according to Tradeweb data.

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell