Italian Bond Yields Rise as EU Fails to Agree Rescue Package

Italian government bond yields rose on Wednesday after European Union finance ministers failed to agree a rescue package to help economies recover from the impact of the coronavirus outbreak, Reuters reported. Diplomatic sources and officials said a feud between Italy and the Netherlands over what conditions should be attached to euro zone credit for governments fighting the pandemic was blocking progress on half a trillion euros worth of aid. Heavily indebted Italy, one of the countries hardest hit by the pandemic, has been lobbying for more economic support — including some form of debt mutualisation. The European Central Bank, which has showered the region with more cheap cash to aid a recovery and scaled up its bond-buying scheme to keep borrowing costs low, has said EU governments must ramp up their fiscal stimulus. It has told euro zone finance ministers that measures worth up to 1.5 trillion euros could be needed, officials told Reuters. Read more