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Except for German bonds, Italian debt is more widely held by European banks than any other government obligation.
"Spanish banks are buying Spanish bonds, Italian banks are buying Italian bonds and British banks are buying British bonds — this home bias is escalating and it is unlikely to abate anytime soon," said Carmen M. Reinhart, an expert on international finance and sovereign debt at the Peterson Institute for International Economics in Washington.
The papal gendarmerie and Italian police have foiled a massive potential fraud at the Vatican bank after two men stopped at the gates to the Vatican were found to be carrying a case containing large amounts of forged bearer bonds, Italian police say.
German bonds, Italian bonds, French bonds?
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In another instance, the firm bought high-yielding Italian bonds while selling lower-yielding German bonds of the same duration.
Some fund managers in London said the sell-off in Italian bonds gained momentum after the clearinghouse raised margin calls on Italian bonds, including 30-year maturities.
Investors have been dumping Italian bonds that they own, and ramping up their negative bets by selling Italian bond futures as well.
The risk premium on Italian bonds over safe-haven German Bunds has hit euro-lifetime highs this week, despite European Central Bank buying of its bonds.
He similarly favors Italian bonds.
Investors dumped Italian bonds, the Italian president met with Silvio, and the great survivor of Italian politics offered to quit.
Italian bonds are hardly a risk-free investment these days.
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