Date: 2 months ago   Category: Financial

Bloomberg: Bonds of Italy can become more risky, than Greek


If dynamics of economic growth in Italy worsens, fears about stability of its debt will amplify, reports to media. For the European investors hold the Italian bonds now can be more risky, than Greek. Writes Bloomberg about it. Capital Economics predicts that profitability of 10-year papers of Greece which during the most part of this decade were for many investors an asset which is better for avoiding by the end of 2019 will be below a rate on similar Italian bonds. It is one of indicators of the fact that they can become safer object for investments. Such assessment is connected with the continuing friction between Italy and the European Union concerning the budget which irritate investors and also with improvement of the budgetary prospects of Greece. "Bonds of Italy are less steady, than Greek. If dynamics of economic growth in Italy worsens, fears about stability of its debt will amplify, pushing profitability up. While in Greece rates will remain unaffected", - Simona Gambarini, the economist of Capital Economics says. The Greek bonds rose in price this year, and their profitability fell to a record minimum against the background of interest of investors in risk papers attracted by decrease in return from protective assets. The rally received an additional boost after the European elections last month which results induced the prime minister Alexis Tsipras to appoint early elections in the country to July 7 that opens an opportunity for coming to power of the government, more friendly to the markets. Italy, on the contrary, remained away from global rally of bonds. The renewed fears that the budget deficit of the country will exceed a 3% limit of the EU next year, promoted preservation of considerable spread of profitability to bonds of Germany from the moment of tension flash in the fall of 2018. Earlier it was reported that in the budget of Greece found the shortage of 5 billion euros. The lack of funds in the Greek budget arose because of government privileges to the population, consider in European Commission. News from the Correspondent.netv of Telegram. Subscribe for our https://t.me/korrespondentnet channel

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