Italian bond yields jump after coronavirus outbreak worsens in Italy

LONDON, Feb 24 (Reuters) – Italy’s borrowing costs jumped on Monday after a coronavirus outbreak in Italy worsened over the weekend, exacerbating concerns about the impact on one of the euro zone’s biggest economies.

Italy raced on Sunday to contain the biggest outbreak of coronavirus in Europe, sealing off the worst affected towns and banning public events in much of the north as a third patient died of the illness.

Italy’s 10-year bond yield jumped over 8 basis points to its highest in more than two weeks at 0.997%. That pushed the gap over German Bund yields to its widest since late January at around 145 bps.

Yields on safe-haven German Bunds meanwhile dipped to -0.466% – their lowest in more than four months. (Reporting by Dhara Ranasinghe; Editing by Alex Richardson)

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