Bond market hardly responds to coming elections in Italy
Predicting the outcome of the elections in Italy is hard, and a large victory by the Five Star Movement could destabilize markets. Still, ABN Amro recommended Italian bonds in february. According to Mary Pieterse-Bloem, global head of fixed income strategy & portfolio management at ABN AMRO Private Banking and an assistant professor of Finance at Erasmus School of Economic, the absolute yield on Italian bonds of 2% is still very attractive.
The Italian economy is still growing less than several other countries in the eurozone, but it is growing faster than in the past. In Europe in general, economies are growing. "A rising tide lifts all boats." according to Pieterse-Bloem.