Italian Bond Roller Coaster May Just Be Approaching Its Zenith
- HSBC raises yield forecast, SocGen favors reducing exposure
- Investors will see how budget plan compares with EU rules
Photographer: Tiziana Fabi/AFP via Getty Images
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Italian bond investors may be about to face their biggest challenge yet.
In the next few months, bondholders will have to navigate reviews from Moody’s Investors Service and Fitch Ratings, a budget in September and political headlines emanating from Rome. HSBC Bank Plc revised higher its forecast for 10-year yields, with strategist Steven Major cautioning that the securities may be prone to wide price swings. Societe Generale SA suggested that investors exit long positions in the nation’s government debt.