The 10-year Italian government bond yield fell to a record low of 0.675% on Monday, taking the cumulative year-to-date loss to 73 basis points.
The yield has been in a steady slide for months despite forecasts calling for a rise in the country's debt to 155% of its gross domestic product, as noted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds, Robeco ONE and Robeco.
That's the power of monetary policy, Blokland tweeted Monday. Indeed, the European Central Bank has been buying bonds since well before the beginning of the coronavirus crisis. The central bank is expected to boost purchases this December to counter the negative inflation.
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