The head of the Italian debt agency says the 2013 gross funding target will be hiked to around 450 billion euros from 415 billion, in an interview with Reuters. He expects to see strong demand from Asian investors if domestic political uncertainty is resolved.
The current thinking in markets is that Japanese investors are piling into French debt but avoiding Italy.
If the political situation improves, the 4.3% yield in Italy looks awfully attractive but issuing and extra 35 billion euros of debt doesn’t exactly build confidence.
