Skip to content

Europe Carry Trades Live On as ECB Delays Taper Talk to December

  • Italian bond premium narrowed most since May on dovish outlook
  • Commerzbank sees spread over German bunds at 75 basis points
Video player cover image
Lagarde Says Europe Is Recovering Faster Than Expected

The message from the European Central Bank is that it’s in no rush to scale back stimulus, giving the region’s bond market a license to rally.

The yield premium on 10-year Italian bonds over German equivalents -- a key gauge of risk appetite -- narrowed by the most since May after President Christine Lagarde on Thursday said the ECB would delay a decision over when to end its pandemic bond-buying program, or PEPP, to December.