Italian Bond Yields set for Biggest Monthly Fall Since July 2015

Italy’s 10-year government bond yield was set on Tuesday to end October with its biggest monthly fall in more than two years.

A decision by the European Central Bank last week to extend its asset purchase programme well into next year, albeit at a reduced amount, has provided a powerful boost to peripheral bond markets in recent sessions. Friday’s surprise ratings upgrade for Italy by Standard & Poor’s has also boosted sentiment towards Italian bonds.

The 10-year Italian bond yield was 2 basis points higher at 1.86 percent in early Tuesday trade, not far off almost 10-month lows. It is down 30 basis points this month and set for the biggest monthly fall since July 2015, 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