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Worst Month Ever in Italian Bonds Leaves Confidence in Tatters

  • Pimco says yields remain ‘pretty low’ even after jump in May
  • ‘Too early’ to conclude the worst has passed: ING’s van Vliet
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Italian bonds may have bounced off this week’s stunning losses, but some of the biggest investors say the worst isn’t over.

While the nation’s benchmark yields had the biggest monthly jump in May since records began in 1993, they are “still pretty low” for Andrew Balls, chief investment officer for global fixed income at Pacific Investment Management Co. The firm has had an underweight position on Italy’s debt, he said, as political and market uncertainties persist.