World Economy

Italy to Sell Bonds

Italy to Sell BondsItaly to Sell Bonds

 Italy is set to lead a surge in eurozone government bond supply on Tuesday in what would be the first major test of investor sentiment after concerns over the future of Prime Minister Matteo Renzi intensified, Reuters reported. The yield on Italy’s 10-year BTP bond rose 1.5 basis points to 1.13% ahead of a planned sale of up to €7.75 billion ($8.66 billion) of three bonds on Tuesday. The move caps a steady rise in the yield over the last fortnight. “BTP yields have sold off over the last two weeks, taking the 10-year BTP-Bund spread (versus Germany) 8 bps wider,” said Michael Spies, an analyst at Citi.