Italian Bonds Gain Amid Optimism Cyprus Will Reach Bailout Deal
This article is for subscribers only.
Italian and Spanish bonds advanced for a third day amid signs Cyprus is moving closer to an agreement that will help it win an international bailout.
Italian securities extended a weekly gain as Averof Neofytou, deputy president of Cyprus’s ruling Disy party, said lawmakers will reach a deal in the next few hours. The bonds of so-called peripheral nations slid at the start of this week as Cyprus sought an unprecedented tax on bank deposits, threatening to reignite Europe’s debt crisis. Benchmark German 10-year bunds fell, pushing the yield up from an 11-week low.