BLOOMBERG.COM
Italy’s constitutional referendum, seen as among this year’s biggest political risks in Europe, is increasingly on investors’ radars as it threatens to drive selling pressure on the nation’s government bonds. Italy’s 10-year yield now trades above Spain’s, and the spread between the two widened on June 29 to the most since February 2015. JPMorgan Chase & Co. expects Spanish bonds to edge out their Italian peers should voters reject Prime Minister Matteo Renzi’s proposed constitutional reform. Meanwhile, Pacific Investment Management Co. says any declines in Italian debt due to political uncertainty from the referendum, expected to be held in October, could present a chance to buy.
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Italy’s constitutional referendum, seen as among this year’s biggest political risks in Europe, is increasingly on investors’ radars as it threatens to drive selling pressure on the nation’s government bonds. Italy’s 10-year yield now trades above Spain’s, and the spread between the two widened on June 29 to the most since February 2015. JPMorgan Chase & Co. expects Spanish bonds to edge out their Italian peers should voters reject Prime Minister Matteo Renzi’s proposed constitutional reform. Meanwhile, Pacific Investment Management Co. says any declines in Italian debt due to political uncertainty from the referendum, expected to be held in October, could present a chance to buy.
Read more>