Italian Bond Yields Jump After Rome Confirms It Will Issue 50 Year Bonds

Jon Alternative Media, Banking, Blogosphere, Economy

What emerged one month ago as a rumor that Italy was contemplating the issuance of half-century, or 50 year, bonds amid a “global search for yield” was confirmed earlier today, when Italy’s Treasury announced that Italy had hired Banca IMI, Goldman, HSBC, JPM and Unicredit as joint lead underwriters of this anticipated issue. “The new bond will ‘be launched in the near future subject to market
conditions” with a structure similar to regularly issued BTPs, the
Treasury said.
Once priced, Italy will become the latest nation to issue super-long bonds this year, following sovereigns including Belgium, France, Ireland and Spain in taking advantage of the historically low interest rates spurred by central bank stimulus. Italy’s Treasury announced the issuance ‘after a thorough market analysis,’ it said in a statement on Monday, Bloomberg reported earlier.

This post was published at Zero Hedge on Oct 3, 2016.