Italy’s Yield Spread to Bunds to Narrow Further, Carmignac Says
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Italian and Spanish 10-year government bond yield spreads over benchmark German bunds will narrow further toward 100 basis points before valuations become stretched, according to Carmignac Gestion SA.
Yields on Italy and Spain’s 10-year securities dropped to records last week after European Central Bank President Mario Draghi said on Aug. 22 that officials are “ready to adjust our policy stance further,” fueling speculation they may embark on a strategy of asset purchases to boost the economy. The central bank’s Governing Council is set to meet in Frankfurt on Sept. 4.