Business Maverick: Europe Bond Risk Gauge Near ‘Danger Zone’ Piles Pressure on ECB

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A selloff in Europe’s weakest bond markets is showing no signs of easing, piling pressure on the European Central Bank to make clearer how it plans to keep diverging borrowing costs contained.

The yield gap between 10-year Italian bonds and their German peers widened for a third day to 226 basis points, the most since May 2020.

The yield on 10-year Italian bonds rose 13 basis points to 2.73%, headed for their highest close since 2014. The rout also spread to Greek debt, which is considered to be even more sensitive to ECB policy. The benchmark 10-year yield surged as much as 29 basis points to 4.41%, the highest since January 2019.

 

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