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Italy Bonds Primed for Gains as Deliverance Day for ECB Beckons

  • ECB expected to announce more bond buying, ultra-cheap loans
  • SocGen sees Italy-German bond spread falling to 2015 low
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Photographer: Francesca Volpi/Bloomberg

Italian bonds stand to gain the most next week if the European Central Bank’s stimulus measures meet market expectations.

Should the policy maker deliver a big enough boost to its bond buying program, Societe General SA expects the nation’s 10-year securities will rally, driving the yield premium over their German counterparts to 90 basis points, the lowest level since December 2015.