Italy Bonds Gain as Populists Take Power But Skepticism Lingers

  • Two-year Italian securities lead advances across maturities
  • SocGen recommends using relief rally to add short positions
Italian yields are "still pretty low" says Pimco’s Andrew Balls.Source: Bloomberg
Lock
This article is for subscribers only.

Italian bonds climbed for the third day, extending a relief rally after the nation’s two populist parties agreed to form a government.

Two-year securities led gains across the curve as the Five Star Movement and the League managed to piece together a team after their original pick for finance minister was vetoed. Giuseppe Conte, 53, a law professor with no political experience, will be sworn in as prime minister along with his cabinet later Friday.