Italian Bonds Rise for Fourth Day as Industrial Orders Increase

Italy’s bonds rose for a fourth day as a government report showed the nation’s industrial orders increased more than economists predicted, adding to optimism the region’s economy is recovering.

The extra yield investors receive to hold Italy’s 10-year bonds instead of similar-maturity German securities narrowed to the least since January. Spanish 10-year bonds also advanced for a fourth day, the longest run of gains in almost three weeks. German 10-year bunds snapped a two-day advance as demand for the region’s safest assets waned.

Italy’s 10-year yields fell two basis points, or 0.02 percentage point, to 3.88 percent at 3:09 p.m. London time. The 4.5 percent security maturing in May 2023 gained 0.12, or 1.20 euros per 1,000-euro ($1,285) face amount, to 105.365. The rate on Spanish 10-year bonds slid one basis point to 4.20 percent.

Germany’s 10-year yield was little changed at 1.34 percent after climbing to 1.41 percent on May 15, the most since March 25. The rate on the nation’s two-year note added two basis points to minus 0.015 percent. A negative yield means investors who hold the security until it matures will receive less than they paid to buy it.

To contact the reporters on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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