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Italy Joins Sub-Zero Club as Rally in Two-Year Bonds Accelerates

Bloomberg business news
Serra Says Italy's Small-, Medium-Cap Exporters Offer Fantastic Value

Italian bonds rallied to send two-year yields below 0% for the first time in over a year, in another sign of growing investor confidence in the nation’s outlook.

Europe’s bonds have surged over the past couple of months amid a global hunt for returns spurred by slowing inflation and the prospect of policy easing. Italy was one of the last to join in the rally, with investors now betting it will avoid punishment from Brussels over its budget deficit and benefit from further stimulus from the European Central Bank.