Italian bond market has been tightened today

September 2, 2018 10:32 amComments Off on Italian bond market has been tightened todayViews: 37

Italian bond marketThe Italian bond market, which has fallen into a difficult situation, has been tightened today before the decision of the international rating agency Fitch. This is in the context of fears that government spending plans in the budget will exert additional pressure on already high levels of government debt.

Most Eurozone bond yields grew slightly in early trading, and interest on Italian bonds fell after a significant sellout last night. The trends in emerging markets triggered a mass sale of risky assets.

The rating agency Fitch is expected to present its new rating today after closing the markets. Its assessment of Italy is currently a BBB with a stable outlook.

The analysts say the rating is unlikely to be downgraded, given that the coalition government, which came to power three months ago, is yet to clarify its plans for spending in the budget. However, they do not exclude a change of perspective to a negative.

The uncertainty surrounding Italy’s 2019 budget put Italian bonds under new pressure, with interest rates on 10-year bonds, maturing at the end of August, rising by more than 45 basis points.

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