Italy Chases Spain as Bond Investors Await ECB Buying
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The shifting fortunes of southern Europe are being reflected in the bond market.
Spain is beginning to lose its allure compared with Italy as policy makers look at injecting money into the euro region’s economy. Spanish and Italian bonds returned about 14 percent this year, according to indexes compiled by Bloomberg. Yet the premium on Italian over Spanish securities narrowed to 15 basis points today, less than half what it was a month earlier.