It’s Spain, Not Italy, That Has European Investors Worried
- Banks highlight Spain’s problems in dealing with the pandemic
- Italy-Spain yield spread shrinks to the tightest since 2018
Pedestrians wearing protective masks walk through Puerta del Sol square in Madrid, Spain, on Oct. 2.
Photographer: Paul Hanna/BloombergThis article is for subscribers only.
Spain’s growing list of risks is starting to make investors nervous.
The nation’s debt is lagging a regional rally that has driven the rate on Italian bonds -- long regarded as the pariah of Europe and among the highest yielding -- close to a record low. That’s narrowed the gap between Spanish and Italian yields to the smallest in more than two years.