Italian 10-Year Yield Surges to Record on Debt, Growth Concern
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Italian benchmark yields climbed to a euro-era record amid concern the region’s third-largest economy is struggling to manage its debt loads, while growth in Europe is faltering.
German two-year note yields were within seven basis points of an all-time low as European finance chiefs meet to discuss the region’s bailout fund. Greek politicians agreed to form a national unity government to win international aid payments. The extra yield investors receive for holding 10-year Italian debt over similar-maturity bunds fell from a euro-era record after Il Foglio said Prime Minister Silvio Berlusconi may step down within “hours.” The rumor was denied.