Italy Surpasses Greece as Euro Area’s Riskiest Borrower

Greece has lost the dubious distinction of being the riskiest government borrower in the eurozone after its bond yields dipped below Italy’s for the first time since 2008, the Financial Times reported. Greek bonds have staged a powerful rally this year as investors hungry for yields have snapped up debt from former euro area crisis spots — a trend that gained further momentum after Standard & Poor’s upgraded Athens’ credit rating to BB- late last month. Italian debt also performed strongly during the summer’s global bond rally, but some investors remain wary due to the effects of last year’s political tensions. Greek bonds held steady during a global debt sell-off on Thursday, with the country’s 10-year yield at 1.10 per cent, a shade above last week’s all-time low. The equivalent Italian yield, meanwhile, rose to 1.16 per cent. Yields rise when prices fall. Read more