Italy's crisis could lead to 3 different scenarios for its volatile bond market

  • 📰 CNBC
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Italy's fresh political crisis has left investors contemplating how to trade its sovereign bond market which has seen significant volatility over the last few months.

. President Sergio Mattarella will hold consultations with various parties in Parliament in the coming days to see whether there is a working majority which would avoid the need for fresh elections.

The spread between Italian and German bonds could fall below 200 basis points in this scenario, Hense told CNBC. He explained that M5S and PD could compromise to put together Italy's 2020 budget, due in mid-October, that respects the EU's fiscal rules. This would mean that investors would see fewer risks when purchasing Italian debt.Chief investment officer UBS wealth management

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines