Ten-year yields in the eurozone will rise on Monday after the results of the Italian parliamentary elections. The victory of the far right provides an extra shot of uncertainty.
The yield on Italian government paper with a ten-year maturity rises to 4.52 percent, or the highest level in nine years. Analysts are wondering what the economic and fiscal line will be that the new right-wing government that is about to arrive will hold.
In the wake of the Italian election results, other interest rates in the euzone are also rising. On top of the war in Ukraine, the energy crisis and the fight against inflation, there is a new – political – risk, analysts say.
The German 10-year interest rate rose to 2.12 percent on Monday, the highest level since December 2011. The French 10-year interest rate rose to 2.71 percent, the highest level in ten years.
The Belgian 10-year yield also rose to 2.7 percent on Monday, or the highest level since 2013.
Interest rates in the eurozone have been on the rise since the beginning of this year due to the interest rate policy of the European Central Bank (ECB). Central banks worldwide are trying to fight inflation with interest rate hikes.
Also review: Giorgia Meloni wins Italian elections
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.