Italy Is the Darling of the Bond World for 2021

  • Commerzbank, JPMorgan see Italy spread below 100 basis points
  • Italy will be among biggest beneficiaries of EU recovery fund
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As European bond strategists draw up their top trades for 2021, one popular theme rises above the rest: load up on Italy’s long-dated debt.

Commerzbank AG, JPMorgan Chase & Co., HSBC Holdings Plc and UBS Group AG are targeting a continued decline in Italy’s 10-year yield premium over bunds, while Deutsche Bank AG prefers positioning for a flatter bond curve relative to its German equivalent. Robeco Institutional Asset Management is opting for the country’s 50-year notes.