LONDON, March 6 Italy is providing investors
with a good opportunity to match low risk and high yield, the
head of the country's debt agency said on Wednesday, adding that
there was good demand for the country's longer-term debt.
Italian debt has been hit by political uncertainty after
elections delivered a hung parliament, raising the risk of a
return to the polls and prolonged paralysis of the country's
efforts to bring its 2 trillion euro public debt under control.
But Maria Cannata, the country's head of public debt
management, said investors were keen on Italian debt.
"There is a big appetite ... in the long-dated maturity
after two years when the market was almost frozen... Italy (has
the) ideal combination of low risk and a good game in terms of
its return," she told a Euromoney bond conference in London.
Ten-year borrowing costs rose to their highest in four months
at a debt auction last week though the European Central Bank's
longstanding but untested bond-buying backstop has staunched a
sharp sell-off of the bonds in the secondary market.
Italy's 10-year bond was yielding 4.64 percent
on Wednesday, down around 10 basis points on the day, compared
with a yield of 1.47 percent on German equivalents.