Italian Bonds in Tailspin Only Get Worse as EU Leaders Squabble
- Ten-year bond yields are on track for a fourth weekly increase
- Moody’s sees Italy credit profile ‘broadly unaffected’ for now
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Each day without a euro-area consensus on a rescue package for the embattled economy, Italian bonds grow ever more vulnerable to the risk of rating downgrades.
The securities swung between gains and losses after European leaders gave themselves another two weeks to agree on a long-term response to the coronavirus crisis, heightening fears about the economic devastation facing the region’s more vulnerable economies. Benchmark 10-year yields headed for a fourth straight weekly jump on concern that S&P Global Ratings could take the nation closer to junk status Friday.