Greece’s Bonds Isolated in Selloff as ECB Shelters Italy, Spain
This article is for subscribers only.
As Greece’s bonds plunge on news the nation faces snap elections next month, the European Central Bank is helping Italian and Spanish securities to escape relatively unscathed.
Spain’s 10-year rate was about four basis points from a record low. And while the yield premium investors demand to hold Italy’s 10-year securities over benchmark German bunds increased today, it remained about 4 percentage points below its 2012 high when contagion from Greece’s debt crisis ripped through Europe’s bond markets.