Economics

Italian Bonds, Euro Decline as Economic Growth Forecasts Are Cut

  • Yield on Italy’s 10-year notes touch highest in almost a month
  • Bunds rally as growth pessimism fuels demand for haven assets

Photographer: Akos Stiller/Bloomberg

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Investors shunned Italian bonds and the euro as doubts grew about the strength of the region’s economy.

Italy’s benchmark notes fell for a third day after the European Commission slashed its growth forecast for the nation’s economy to 0.2 percent from 1.2 percent. German bunds, which traders view as haven securities, rallied.