Italy optimism meets yield frenzy as investors pile in

25 Apr 2013

The cautious tone struck this week by Enrico Letta, Italy’s new prime minister designate, did nothing to dissuade investors from pursuing their prolonged yield grab in peripheral assets.

Seizing on the apparent political progress in the country following the weekend re-election of president Georgio Napolitano after six rounds of voting, a buyside desperate for yield shrugged off dire data from Spain and Letta’s downplaying of his prospects of
forming a government.

Expectations of a rate cut ...

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