“Italy’s bonds advanced for the first time in three days after European Union finance ministers opened the way for looser budget policies that may support growth.
German 10-year bunds fell as euro-area retail sales increased in January more than economists predicted, sapping demand for the safest assets. Portugal’s 10-year yields dropped to the least in more than a month after EU Economic and Monetary Affairs Commissioner Olli Rehn, in Brussels for a meeting of the bloc’s finance ministers, said the country and Ireland may get more time to repay bailout loans. Global stocks and commodities rallied on bets central banks will continue stimulus measures.
“There’s a more general risk-on sentiment today” driving Italian yields lower, said Chiara Cremonesi, a fixed-income strategist at UniCredit SpA (UCG) in London. “Bunds are weak as well. It could be that this meeting is also having some impact,” she said of the finance ministers’ gathering.
Italy’s 10-year yields fell 11 basis points, or 0.11 percentage point, to 4.77 percent at noon London time after sliding 16 basis points, the steepest decline since Feb. 25. The 5.5 percent security maturing in November 2022 gained 0.885, or 8.85 euros per 1,000-euro ($1,304) face amount, to 106.055.
The EU is considering easier repayment terms for rescue loans to Ireland and Portugal in a bid to ease their exit from aid programs, Rehn said. The nations say they deserve concessions similar to those granted to Greece last year.
