Italian Bonds Outperform Bunds on Bets of Further ECB Stimulus
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The yield premium investors demand to hold Italian 10-year bonds over their German peers narrowed to the least in three years on bets the European Central Bank will take further action to combat low inflation.
German 10-year bunds declined for a third day as euro-area consumer confidence unexpectedly climbed this month to the highest level since October 2007. The chances of the ECB undertaking large-scale asset purchases this year have risen to more than 50 percent, according to Citigroup Inc. Dutch bonds fell as the Netherlands sold 2.48 billion euros ($3.42 billion) of three-year notes today, while Belgium auctioned debt maturing in 2019, 2024 and 2035.