Draghi’s government will prompt further rates decrease UniCredit says 50-yr now more appealing than 30-yr maturity (Adds bullets)
ROME, Feb 12 (Reuters) - With Mario Draghi set to become Italian prime minister, analysts see scope for Rome to issue an extra-long bond, cashing in on ultra-low interest rates and buoyant sentiment over the former European Central Bank chief taking office.
The Italian Treasury sees overall issuance in 2021 broadly in line with last year’s 551 billion euros ($668.2 billion). Funding needs rose in 2020 due to the economic impact of COVID-19, with sales of medium-to-long-dated bonds rising by 110 billion euros.
“With the ECB buying, curves flattening and the 2067 bond now quite old, I would have expected them to have already issued a 50-year BTP by now,” said a primary dealer who asked not to be named, adding that Draghi’s arrival was “a perfect opportunity”.
The Australian and New Zealand dollars slipped on Friday as risk sentiment took a knock after alarmingly high U.S. jobless claims and Victoria state's entry into a five-day snap lockdown after a fresh coronavirus outbreak in Melbourne linked to the UK strain.
MSCI's gauge of stocks across the globe rose for a 10th straight session on Friday and hit another record high as investors anticipated new fiscal aid from Washington to help the U.S. economy recover, while benchmark U.S. Treasury yields rose to their highest levels since.
South Africa's rand inched down early on Friday, following its near-2% gain recently, while President Cyril Ramaphosa's state of the nation address (SONA) last night failed to detail any new reforms.
MSCI's gauge of stocks across the globe rose for a 10th straight session on Friday and hit another record high as investors anticipated new fiscal aid from Washington to help the U.S. economy recover, while benchmark U.S. Treasury yields rose to their highest levels since.