Europe’s Risky Bonds Tempt Traders as ECB Signals No Taper Yet
- Italian debt snaps losses spurred by concern of tighter policy
- For bond bulls, inflation expectations may have peaked
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A battle is raging in Europe’s riskiest government-bond markets between fear that central bank support is waning and desire to snap up some of the region’s most lucrative assets.
Nowhere is the tension more evident than in Italy’s sovereign debt, where the longest run of weekly declines for the nation’s 10-year notes since 2018 was followed Friday by the most explosive two-day rally since mid-March.