Italy Bonds Rise for Second Day as President Waits on Populists

Investors are ‘dipping their toes’ back into BTPs: Danske Bank
Two-year bonds retrace most of Tuesday’s unprecedented selloff

The ECB may get involved if Italy’s 10-year yield rises above 5 percent, says Hermes Fund Managers’ Andrew Jackson.(Source: Bloomberg)

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By John Ainger

May 31, 2018 at 7:36 AM UTC

Updated on

May 31, 2018 at 8:31 AM UTC

This article is for subscribers only.

Italian bonds climbed for a second day as the political turmoil that has rattled markets in recent days eased.

Italy’s 10-year securities are well on the way to retracing Tuesday’s decline, with two-year yields falling back below one percent, finding support on the prospect of the Five Star Movement and the League reviving coalition talks. Anti-European Union rhetoric has also dimmed, with both parties insisting that they had no plans to ditch the common currency or abandon the EU.