Italian government bond futures opened sharply higher on Monday, after Economy Minister Giovanni Tria said at the weekend the new coalition government had no intention of leaving the euro and planned to cut debt levels.
Presentation of a new 2 Euro commemorative coin of former German Chancellor Helmut Schmidt in Berlin, Germany, February 2, 2018. (Photo: Reuters)
The comments offered some reassurance to investors who have demanded a higher premium for holding Italian bonds in recent weeks on concerns that a government made up of anti-establishment parties would increase spending and clash with European Union rules on fiscal discipline.
The Italian BTP future FBTPc1, a key bond market instrument used by investors to hedge exposure to Italian bonds, rose more 150 ticks in early trade to 124.18.
In contrast, German Bund futures opened 18 ticks lower at 160.22 FGBLc1