Italy's benchmark bond yield hit its lowest level in 15 months as the government bond market rally continued despite central bank officials' efforts to rein in the exuberance. The Italian 10-year yield, which moves inversely to the price, fell to 3.55%, the lowest since late August 2022. Yields or interest rates on government borrowing have tumbled in November and December as inflation in the US and Europe has fallen sharply and central bankers have said interest rate hikes are almost certainly over. Germany's 10-year bond yield, the benchmark for the eurozone as a whole, hit a fresh nine-month low of 1.94%, while Ireland's equivalent yield also fell, to 2.26%. Expectations for lower interest rates - and therefore government borrowing costs - have been a balm for Italy, which has a pile of public debt worth around 140% of GDP.

Source: Irish Examiner December 22, 2023 00:44 UTC