Another Week, Another Risk That Weighs on Italy’s Battered Bonds
- Court to rule if ECB can deviate from bond-buying restriction
- Italy yield spread over bunds jumped most since 2018 in April
A cyclist, wearing a protective face mask, passes along the banks of the Navigli canal system in Milan, Italy, on April 8.
Photographer: Francesca Volpi/BloombergThis article is for subscribers only.
Investors in Italian bonds seem to find themselves facing a new risk every week.
This time it’s a German court ruling that could determine the level of support Italy’s debt markets can draw from European Central Bank’s quantitative-easing program. Also, there’s a May 8 ratings review by Moody’s Investors Service that may threaten the Mediterranean nation’s ability to finance a recovery from the economic havoc wreaked by the coronavirus.