, Columnist
Italian Bonds Rejoice in Statement of the Obvious
A technocrat’s commitment to the euro is just what the short end wants to hear.
Sweet technocratic music.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Italy’s new finance minister has made a public commitment to the common currency, something that really shouldn't have to be said. The positive reaction from Italian government bonds shows it needed to be.
That reassurance, along with other market-friendly comments, should stoke a further drop in short-dated Italian bond yields. The Italian curve had flattened dramatically as political turmoil hammered the shorter maturities, and this should now correct back.