Italian bonds set new record-low yields

Markets anticipate ECB will buy sovereign paper

(ANSA) - Rome, November 24 - Italy's benchmark 10-year bond posted a record-low yield in early trading Monday, reaching 2.18% amid market speculation that the European Central Bank may soon begin buying sovereign paper.
    The 10-year BTP began to fall Friday after ECB President Mario Draghi warned that economic prospects for the eurozone looked bleak, hinting at even more action from the central bank to try to boost sagging inflation by encouraging growth.
    The spread between Italy's benchmark bond and its German counterpart, often seen as an indication of confidence in the Italian economy, narrowed to 140 basis points from Friday's close of 144 basis points. The ECB has taken a number of other measures to try to stimulate eurozone economies, including the purchase of asset-backed securities and offering record-low loans to commercial banks.
   

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