The Italian government is worried about the bond yields that are currently being offered. The yield is now the highest it has ever been for 10 year bonds. As a result, many people are starting to buy up these bonds. While the world does not think that Italy will default on these bond payments, there is some caution being hedged on this side. Italy is a world power and no one wants to seem them default.
Key Takeaways:
- Having a diversified portfolio is smart for any particular investor in any sector.
- The amount of money that is flowing through the country now is incredible.
- Many people do not like to buy bonds because there is very little reward unless you have a ton of money.
“”There are risks associated with the position,” he said. “Italian yields could be pushed higher by escalating tensions between Italy and the European Commission, a breakdown of the current Italian coalition, or the departure of Finance Minister Giovanni Tria.””
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