Investors Drop Italian Bonds, Seeking Safety in German and French Debt

Yields on benchmark bonds in Italy have jumped this week as investors grew concerned about the coronavirus outbreak

As new pockets of infection have emerged outside China, Italy, South Korea and Iran are scrambling to contain the spread of the coronavirus. Photo: Zuma Press

28365365体育投注Investors are shunning Italian government bonds after the country became Europe’s epicenter for the coronavirus outbreak this week, leading to renewed worries about one of the region’s most indebted economies.

Yields on the country’s 10-year bonds rose, while those on German and French debt slid, signaling that fixed-income investors in Europe are pulling out of Italian sovereign debt and heading instead for the safety offered by less indebted economies. The week has also seen a sharp selloff in equities and other risky assets...