Dubai PR Network, Online Press Release from Dubai and Middle East
 
Business, Banking and Investments(Banking & Investments)
Filter PR by
  
Biggest Japan buying of Italian bonds since 2014
 

By Christopher Dembik, Head of Macro Analysis, Saxo Bank

Dubai, United Arab Emirates -  22, August 2019:    Japanese investors bought into Italian government debt in a big way in June according to the latest figures released by the Japanese government. They increased their portfolio holding by 327bn JPY (roughly 2.6bn euros), which is the largest net monthly increase since the series began five years ago.

The Italian bond market remains attractive for investors. As a matter of fact, the risk of Italy leaving the EU is extremely low. Based on July Sentix survey of 1000 investors, only 4% of institutional investors and 9% of private investors consider that there is a real risk of Italexit within one year. In other words, the risk is virtually close to zero. Adding to that expectations of further ECB stimulus from September, it is not surprising to see the yields spread between Italy and Germany 10-year bonds narrowing to below 200 bps.

In addition, the search for yield in the low interest rate environment coupled with rotation out of German bunds have benefited to Italy. Contrary to many other European countries where the yield curve is negative up to 30 years for Germany or 50 years for Switzerland, it is only negative up to one year for Italy. The 2-year yield is at 0.15% and the 10-year yield at 1.45%.

The next release of purchases by the Japanese government will be on September 9th. We expect that some of the positive flows we have noticed in June should be reversed in coming months due to political tensions within the governing coalition and uncertainty about the Italian budget.

 


Posted by : Dubai PR Network Editorial Team
Viewed 3556 times
PR Category : Banking & Investments
Posted on : Thursday, August 22, 2019  10:57:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Red Hat Recognized as a Leader by Independent Research Firm ...
Next Story : Empower: 16% rise in transactions through E-services
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Look after your body & enjoy nourished skin from Local, Homegrown Company, The Simplicity ... [8961-Views]
China's Latest Moves in Ip Protection Leads to Unprecedented Legal Judgement for Swedish S... [6338-Views]
Karama gets crowned. Once more. [5624-Views]
American Eagle Launches It's Holiday'19 Collection [5246-Views]
Stack It Up With Shack Stack Now in the UAE! Shake Shack is All About Upping the Burger Ga... [5142-Views]
Steve Madden Celebrates Brand's 30th Anniversary In Dubai [5112-Views]
Parmigiani Fleurier Tonda Chronor Slate [5039-Views]
Al Tayer Motors launches the new Maserati Quattroporte SQ4 Zegna PELLETESSUTA™ at the Duba... [4843-Views]
A Charming New Aigner Update [4740-Views]
The "Karl Legend" Collection [4703-Views]
The perfect Watch from Beach to Tux [4666-Views]
Monochromatic Denim [4453-Views]
Dubai Design Week and the first Rado Star Prize UAE [4319-Views]
Pandora Holiday Collection [4240-Views]
‘Carpet of Tolerance' created by Hands and Senses revealed at Downtown Design, Dubai [4160-Views]
Redefine Your Winter Wardrobe with REDTAG! [4136-Views]
Rivoli Group Announces Winners of the Third Qualifier Tournament for Omega Nations Golf To... [3947-Views]
Massive Diabetes Awareness and Management Drive in Ras Al Khaimah to screen thousands [3916-Views]
Humans in Space Symposium discusses what it takes to be an astronaut [3874-Views]
Emirati Musicians, International Composers & the Royal Philharmonic Orchestra in Harmony F... [3831-Views]
Edgy and Modern - ECCO Sculpted Heel Boots [3690-Views]
Lenovo's ‘Remove-IT Program' Aims to Reduce Electrical and Electronic Waste in the Middle ... [3690-Views]
Tween girl fashion brand Justice opens new concept store in Mall of the Emirates [3581-Views]
Ella Balinska, a new ambassador of Panthère de Cartier [3568-Views]
SmartCrowd, MENA's Only Regulated Real Estate Investments Platform Graduates from DFSA's I... [3568-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories