ROME, Nov. 8 (Xinhua) -- Although yields on Italian government bonds have dipped by around 50 percent since July, they still surpassed all other bond yields in the 19-nation eurozone on Friday.
According to Marketwatch and Bloomberg, Italy's five-year bonds yielded 0.511 percent on Friday, climbing higher than Greece's bonds, which were trading at 0.467 percent in mid-day trading on U.S. markets.
By the day's close, the Italian bond yield remained higher than Greece's.
For the first time since 2008, as historical data showed, at Friday's opening in European trading, the Greek government's five and ten-year bonds did not have the highest yield in the eurozone.
Rates for both Italy and Greece are low by historical standards.
At negative 0.531 percent, yields on German five-year bonds were the lowest in the eurozone in midday trading on Friday on U.S. markets.
Bond yields are a reflection of investor confidence in the bond issuer's ability to pay its debts. Yields are pushed higher when a bond issuer is considered more risky.
Yields have been falling all across the eurozone in recent months, as political situation, economic growth, bank interest rates have been relatively stabilized.
A little more than a year ago, in October 2018, yields on Italian ten-year bonds were 3.52 percent, more than three times higher than the current levels. As recently as in July of this year, yields were 2.39 percent, more than double the current rate.
Lower yields are helping the Italian government meet its budget goals, since they mean the government can borrow money at lower cost. The Italian government is currently negotiating its 2020 budget plan, which it must finalize by the end of the year.
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