The latest demand for Italian bonds due to inflation has fallen sharply to record the second lowest demand in the history of these bonds in light of the current crisis between the Italian government and the European Commission on the Italian budget next year.
According to Bloomberg, the total demand for Italian bonds was 2.16 billion euros (2.46 billion dollars), which was much lower than analysts who expected to buy bonds worth 8 billion euros before this offer.
Yield of Italian bonds in annual market trade continues to grow after Italian Deputy Prime Minister Luigi de Mayo expressed the view that there is an opportunity to discuss plans for the Italian budget that violate EU rules on public spending.
The issue of issuing an Italian bond is expected to cause concern for the coalition government in Rome, as the government wants to increase government spending to stimulate economic growth.
"There is no reason to buy Italian bonds related to inflation," said Richard Kelly, head of global analysis at Toronto Dominion Bank in London. "If you don’t need this, the demand for bonds is likely to continue, but it will not be strong if investors do not touch. The government has reviewed its budget in a way that satisfies the markets. ”
The yield on bonds redeemed in November 2022, after inflation reached 1.45 percent.
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