Italian govt borrowing costs set for biggest weekly jump since 1994
LONDON, March 13 (Reuters) – Italy’s 10-year government bond yield has soared 74 basis points this week and on Friday was set for its biggest weekly jump since 1994, according to Refinitiv data.
A comment by ECB President Christine Lagarde on Thursday that the central bank was not there to “close spreads” hit peripheral government bond markets hard, especially Italy’s, just as investors panic about the economic hit from the coronavirus.
Reassuring remarks from ECB officials including Lagarde have since failed to reverse the move, although bond analysts noted wider markets were also very volatile.
Italy’s 10-year bond yield was last trading at 1.85% , slightly higher on the day.
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