Spain's Bonds Yield Most Versus Italy in 2 Years Before Election
- Traders pricing in heightened risk before December vote
- Spanish 10-year yield below Italy's as recently as July
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In Spain’s government-debt market, the nation’s elections in December are dominating investor sentiment and outweighing the impact of the European Central Bank’s bond-buying program.
Spanish securities underperformed their regional peers on Monday, pushing the yield premium 10-year bonds have over Italy’s to the most in two years. The elections come as the Catalonia region bids for independence while anti-austerity parties may force traditional parties into coalitions. The uncertainty of the election result is being priced into bond markets, according to Amundi, a European money manager with more than 954 billion euros ($1.1 trillion.)