French Election Jitters Sets Bearish Tone for Italian Bonds
- Nomura says Italy concerns to persist on low growth, high debt
- Italy spread against Germany widens to highest since 2014
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The impending French presidential election is rippling across Europe’s bond markets.
French bonds fell on Tuesday, increasing the yield spread over Germany to 74 basis points. Italian 10-year yields climbed to 2.27 percent, widening the spread over bunds to the highest level since 2014. Jitters are increasing before the first round of voting on April 23, with polls indicating the stage may be set for a four-way race.