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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