Italian Bond Yields Fall to Record Low as Investors Back Draghi
- Draghi told lawmakers that a euro-area budget is key priority
- Spread over Germany could drop below 2015 levels, NatWest says
This article is for subscribers only.
A rally in Italian bonds sent the country’s borrowing costs to a record low amid optimism Premier-designate Mario Draghi will push for key structural reforms once he forms a government.
The yield on 10-year government debt fell to 0.5%, dropping below the previous low set last month. Former European Central Bank President Draghi, who helped rein in Italy’s debt risk from the euro-area crisis nearly a decade ago, has won near-unanimous support from across the political spectrum following the collapse of the previous coalition. He told lawmakers Monday that a common euro-area budget will be one of his key priorities.