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Spanish Bonds Beating Italy’s by the Most in a Year and a Half

  • Ten-year yield spread widens on political divergence
  • Spain is best performer among euro-area peers in past month
Updated on

Spain’s government bonds are outperforming their Italian peers as the nations’ political fortunes diverge.

The yield premium that investors demand for holding Italian 10-year securities instead of similar-maturity Spanish debt has risen to the most in more than 18 months. Spain’s government bonds posted the biggest returns among euro-area sovereign securities in the past month, according to Bloomberg World Bond Indexes.