Italian Bonds Decline as Lawmakers Struggle to Form Government
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Italian 10-year bonds fell for a third day as Prime Minister-designate Enrico Letta consults with other political leaders as he struggles to form a new government to end a political impasse.
The nation’s securities declined even as the country auctioned 8 billion euros ($10.4 billion) of six-month bills at a record-low yield. Benchmark German bunds extended a second weekly gain as the Bundesbank criticized the European Central Bank’s bond-buying program in an opinion for the nation’s constitutional court. The ECB will lower its key interest rate to 0.5 percent next month, according to the median estimate in a Bloomberg News survey of analysts.