Italy Bond Selloff Pushes Yield to 3-Month High Amid Equity Rout
- Yield spread over bunds jumped most since June on Monday
- German 10-year yield falls below 0.2% for 1st time since April
This article is for subscribers only.
Italian and Spanish 10-year government bonds dropped, pushing the additional yield investors demand to hold the securities over benchmark German bunds to the most since July, as a rout in riskier assets persisted around the world.
Italy’s 10-year bond yield climbed to its highest since November, further widening the spread versus similar-maturity bunds that had already expanded on Monday by the most since June. Portugal’s 10-year bond yield touched the highest since October 2014 amid a selloff that has roiled markets from corporate bonds to stocks. Germany’s 10-year bund yield dropped below 0.2 percent for the first time since April as investors sought the region’s safest sovereign securities.