Despite global market turbulence triggered by geopolitical tensions, including the U.S.-Iran conflict and inflation concerns, Italian government borrowing costs have remained notably below the levels seen before Giorgia Meloni assumed office.<\/p>\n
Lauren Hyslop, an investment manager at Mattioli Woods, told CNBC that Meloni has surprised markets by governing as a fiscal pragmatist rather than adhering to populist strategies. This approach has led to tighter bond spreads, upgraded ratings, and reduced borrowing costs, effectively restoring investor credibility for Italy.<\/p>\n
Ken Egan, senior director for sovereigns at KBRA, agreed that the country no longer carries the default political instability premium of the past. He pointed to the continuity of a long-serving government, a predictable fiscal trajectory, and ongoing reforms as key drivers of this shift.<\/p>\n
Egan noted that Italian medium- and long-term bonds have outperformed peers among developed economies. Although the 10-year yield has risen by 62 basis points this year, the 10-year total return remains the best in Europe when accounting for both price movements and interest income.<\/p>\n
However, Jason Borbora-Sheen, co-portfolio manager at Ninety One, cautioned that the fiscal turnaround contains a self-fulfilling element. He explained that political stability tends to reduce debt burdens, which in turn boosts public satisfaction with the incumbent government.<\/p>\n
Despite acknowledging the positive fundamental story, Borbora-Sheen stated that his team does not view Italian government debt as a compelling investment, noting that the market has already priced in the improved outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"
Italy’s bond yields remain lower than at the start of Meloni’s term despite global turmoil, but former leaders warn economic reform must follow the political milestone.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[967,92,379,104,971,911,93],"class_list":["post-791","post","type-post","status-publish","format-standard","hentry","category-business","tag-bonds","tag-business","tag-economy","tag-finance","tag-giorgia-meloni","tag-italy","tag-markets"],"_links":{"self":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/posts\/791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/comments?post=791"}],"version-history":[{"count":0,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/posts\/791\/revisions"}],"wp:attachment":[{"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/media?parent=791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/categories?post=791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yovao.com\/index.php\/wp-json\/wp\/v2\/tags?post=791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}