Italian Bonds Fall 6th Week Amid Fed Concern; German Bunds Gain
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Italian government bonds fell for a sixth week, the longest losing streak in a year, amid concern the Federal Reserve will slow its asset-purchase program that has boosted higher-yielding securities around the world.
Italy’s 10-year yields climbed to the highest level in two months after a report showed gross domestic product shrank more than initially reported last quarter. Portuguese and Greek bonds also dropped this week after European Central Bank President Mario Draghi said debt purchases will only be used when prices are out of line with fundamentals. German bunds rose as speculation central banks will remove stimulus pushed down stocks and boosted demand for the region’s safest securities.