Italy’s Bonds Drop Before Greek Talks as Draghi Sees Inflation

Italian bonds declined as investors shunned the euro area’s higher-yielding government debt before German Chancellor Angela Merkel meets with Greece’s prime minister Alexis Tsipras.

Amid concern Greece risks running out of money by early next month, JPMorgan Chase & Co. said investors should reduce holdings of peripheral bonds pending the outcome of Greek debt talks. German bunds joined the selloff as European Central Bank President Mario Draghi said inflation will increase “gradually” toward the end of 2015, and that there will be no shortage of securities for the central bank to purchase under its quantitative-easing plan.