Bond yields slide on better data, trade talks

Italian and Greek government bond yields fell on Monday, as encouraging economic data and an agreement by the US and China to resume trade talks boosted demand for riskier assets.

After a slow start, buying gathered momentum and 10-year Italian government bond yields fell 8 basis points to 2 percent, their lowest since May 2018.

Greece’s 10-year yield was last down over 10 bps to a record-low 2.352 percent.

“Healthier risk sentiment globally and the still strong performance in core bond markets means more and more investors are taking on credit risk, and that means buying Italian and Greek bonds,” said Peter Chatwell, head of rates strategy at Mizuho.

“Greece [and] Italy are tightening the most,” said Christoph Rieger, rates strategist at Commerzbank: “There have been a few stories which fit the picture.”

[Reuters]