Just looking at Italian bonds, observers would have little clue about the nation’s dire economic situation.
Instead of trading as though its credit rating is on the precipice of junk status, the debt is acting more like a haven, according to Moody’s Analytics data. Italy’s coalition government can raise money for 10 years at 0.76%, a whisker above a record low. The spread over German bonds, a key gauge of risk, is the narrowest in years.
