Chinanews.com, October 9th. According to Euronet, the European Union News Agency reported that the new crown epidemic has caused the Italian economy to face the worst recession since World War II. The bond performance in the third quarter achieved good results.

The picture shows the Euro sculpture in front of the "Euro Tower" in the center of Frankfurt.

Photo by China News Agency reporter Peng Dawei

　　According to reports, since the outbreak of the new crown epidemic, Italy's national debt has accounted for nearly 160% of its GDP, and its public debt rating has been lowered to slightly higher than non-investment grade by international rating companies Standard & Poor's and Moody's.

　　Prior to the ECB meeting on October 8, Italy’s 10-year foreign debt yield fell by 3.3 basis points, setting a new low since August 24, and market inflation expectations continued to deteriorate, and key long-term indicators fell to a new one. The monthly low was 1.17%.

However, the risk premium on 10-year bonds it paid for Italian safe-haven bonds was 162.3 basis points, the highest level since August 6.

　　Although Italy's economic performance is not satisfactory, Italy is the biggest beneficiary of the EU's 750 billion euro recovery plan.

It is estimated that Italy can obtain 82 billion euros in free aid and 127 billion euros in low-interest loans, which will effectively drive the Italian economy.

　　Moody's, an international rating company, believes that due to Italy's largest beneficiary of the EU Recovery Fund, although the current Italian bond rating is "Baa3", some investors seem to be viewing Italian bonds as a safe haven.

The spread between Italy and Germany's 10-year bond, which is now considered a key risk measurement, has narrowed to its lowest level in years.

　　At present, Italy's borrowing costs have not only fallen all the way, but also relying on the European Central Bank's unprecedented bond purchase plan and the prospect of assistance from the European Union Recovery Fund, Italy's third quarter bond performance has jumped to the top of the euro zone.

　　Moody's believes that Italy still needs to overcome heavy bureaucracy and the huge gap between rich and poor, otherwise, once it is downgraded to "junk", it will be eliminated by the main bond index.

(Huang Xin)