Italy’s Bonds Drop After Fitch Downgrade; German Bunds Advance
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Italy’s government bonds fell for a second day after Fitch Ratings downgraded the nation, saying inconclusive elections threatened its ability to respond to recession.
Two-year notes led losses as Fitch said after markets closed last week that Italy’s recession was “one of the deepest” in Europe. German 10-year bunds rose for the first time in six days as investors sought the region’s safest assets. Spain’s 10-year yield declined to the lowest level since November 2010 after Economy Minister Luis de Guindos predicted economic growth would resume before year-end.