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Italy Bonds Advance for Third Day as Oil, Gold Gain
Photographer: Chris Ratcliffe/Bloomberg Europe’s shared currency climbed less than 0.1 percent to $1.3745 at 6:12 a.m. in New...
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Italian bonds gained for a third day as the nation’s industrial output beat economists’ forecast. Oil led commodities higher while European stocks and U.S.-equity index futures were little changed.
The yield on
Italy’s 10-year bond fell four basis points to 4.08 percent at 7:43 a.m. in
New York. The yield on 10-year Treasuries dropped two basis points to 2.82 percent. The Stoxx
Europe 600 Index and Standard & Poor’s 500 Index futures slipped less than 0.1 percent, erasing earlier gains. West Texas Intermediate crude jumped 1.2 percent and gold added 0.7 percent.
Italy’s factory output rose 0.5 percent after gaining 0.2 percent in September and industrial production in the U.K. increased for a second month, reports showed today. St. Louis Federal Reserve President
James Bullard said yesterday that while the odds of reducing central bank bond purchases have risen, any reduction in stimulus should be modest to account for slow inflation.
“Activities in the euro region are picking up at a gradual pace,” said
Luca Jellinek, head of European rates strategy at Credit Agricole Corporate & Investment Bank in London. “It’s not a strong recovery but recovery nonetheless.”
The Italian-German spread narrowed to as low as 224 basis points, the least since July 2011. The yield on
Spain’s 10-year bonds fell five basis points to 4.06 percent, narrowing the spread with similar-maturity German bunds to 222 basis points, the least since June 2011.