Italian Two-Year Yields Show Rate Wagers Untouched by Selloff
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For all the concern over a slide in euro-area bonds in the past month, holders of shorter-dated securities have kept the faith because there’s no immediate prospect of the central bank raising borrowing costs.
Italian two-year note yields dropped below 0.1 percent for the first time on Wednesday, while Portugal sold six-month bills with a negative yield. Even as Italy’s 10-year bond yields jumped in April by the most in 22 months, those on the nation’s shorter-dated debt fell. Shorter-dated notes held their gains on Wednesday even as those with longer maturities fell from France to Spain before debt sales on Thursday.