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Bond Buyers Back Italy on Hope Political Risks Are Just Noise

  • M&G buying front-end BTPs, while BlueBay has a long position
  • Italy’s leaders to respond to EU budget rebuttal by Nov. 13
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Italy's a Low-Grade Fever Not a Crisis for EU, Strategist Chandler Says
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The euro area’s highest investment-grade bond yields are simply too good to pass for some investors even as another round of dust-up between Italy and European Union looms large this week.

M&G Investments is dipping back into Italian short-dated debt, while BlueBay Asset Management LLP has a long position in the securities known as BTPs. The near doubling of yields since the start of the year has also tempted retail investors back into the market, who tend to hold the bonds until maturity, according to the nation’s debt agency head Davide Iacovoni.