Italy pays higher prices to sell government bonds
Italy has offered the highest returns in four years to sell government debt amid political uncertainty.
Investors demanded a higher return to take on Italian debt, with the return on 10-year government bonds rising to about 3% – the highest since 2014.
However, there was healthy demand for the bonds and the Italian government raised €5.6bn ($6.5bn; £4.9bn).
Barclays investment strategist Hao Ran Wee said: “No investor would lend to the Italian government if they deem it as being unable to pay back its debt.”
The European Central Bank was watching events in Italy but not considering intervention at this time, it is understood.
“We’re not yet at a stage when you have to start worrying about bank deposits and I hope we’ll never get there,” a source told Reuters.
Markets in Asia ended sharply lower on Wednesday, with the Nikkei in Tokyo falling 1.5% to its lowest close for six weeks, while Shanghai dropped 2.5%, Singapore shed 1.9% and Hong Kong’s Hang Seng lost 1.4%.
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Source:Income BBC
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