The spread between Greek and Italian benchmark bonds narrowed below 100 basis points for the first time since 2009 as continued tensions ahead of Italy’s budget and forthcoming credit ratings updates keep its bonds in focus.
Italy, which has the highest debt load in Europe, faces a likely confrontation between the ruling populist coalition and the European Union on its first budget next month and a possible Moody’s downgrade at the end of October.
Greece, with Europe’s highest debt-to-GDP ratio, came out of its bailout this month.
Source: Bloomberg
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