Italian Bonds Drop as S&P Cuts Rating; Outlook Remains Negative

Italian 10-year government bonds declined for a second day after the nation’s rating was lowered by Standard & Poor’s because expectations for a weakening in economic prospects and the country’s impaired financial system.

Yields (GBTPGR10) on the Italy’s debt securities maturing in May 2023 increased seven basis points, or 0.07 percentage point, to 4.48 percent at 7:27 a.m. London time. Two-year rates jumped five basis points to 1.58 percent.

S&P cut the rating to BBB, or two levels above junk, and said today in a statement that the outlook remains negative.

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

To contact the editor responsible for this story: Tim Farrand at tfarrand@bloomberg.net

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