Italian Bonds Fall on Bersani Coalition Comments, Auction Result

Wednesday, 27 Mar 2013 07:26 AM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink

Italian government bonds fell, extending a quarterly decline, as Democratic Party leader Pier Luigi Bersani said there was no possibility of a broad coalition to resolve a deadlock caused by elections last month.

The country’s five-year yield jumped the most in a month as demand declined when the nation sold 6.91 billion euros ($8.83 billion) of debt at an auction. The Five Star Movement will vote against Bersani in a confidence vote, the party’s chief whips in parliament said in Rome. German bunds rose, pushing 10-year yields to the lowest in three months, even as European governments vowed the tax on bank accounts to finance Cyprus’s aid package won’t be a precedent for future rescues.

“It’s a combination of the political uncertainty coinciding with an auction that’s put Italian bonds under pressure,” said Jamie Searle, a fixed-income strategist at Citigroup Inc. in London. “The auctions weren’t the strongest and that’s meant Italian bonds continue to struggle post supply. Italian yields are likely to face upward pressure heading into the second quarter until there’s a much clearer resolution of the uncertainty.”

Italy’s 10-year yield rose 16 basis points, or 0.16 percentage point, to 4.73 percent at 10:45 a.m. London time after reaching 4.74 percent, the highest since March 18. The 5.5 percent bond due in November 2022 fell 1.22, or 12.20 euros per 1,000-euro face amount, to 106.325. The yield was 4.50 percent at the end of last year.

The five-year yield increased 19 basis points to 3.53 percent, after climbing as much as 22 basis points, the most since Feb. 26.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved