Italian Bonds Fall as Fed Officials Signal Higher U.S. Rates
- Spanish 10-year government securities also head lower
- Germany allotted 810 million euros of 30-year bonds in auction
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Italy’s government bonds led declines among the euro area’s higher-yielding sovereign securities amid speculation the Federal Reserve will raise interest rates more aggressively than investors have been predicting, damping demand for fixed-income assets.
Spanish bonds also fell after Chicago Fed President Charles Evans on Tuesday pushed back against traders pricing just a single rate increase by year-end or later. Germany’s bonds were little changed after the nation’s debt agency sold 30-year securities at an auction Wednesday that failed to draw enough bids to meet its target. The German government said it plans to keep its target for bond and bill sales unchanged in the second quarter.