Bloomberg News

Goldman Sachs Ends Bet to Favor Italian Bonds Over French Peers

February 14, 2012

Feb. 14 (Bloomberg) -- Goldman Sachs Inc. said it ended a recommendation to favor Italian 10-year bonds over their French counterparts after the yield difference narrowed toward its 250- basis point target, putting the trade in line for an 8.75 percent return.

It initiated the recommendation on Jan. 8, with the Italian securities yielding 376 basis points more than the French bonds, Francesco Garzarelli, co-head of fixed-income strategy in London, wrote in a note to clients today.

The spread was at 261 basis points today at 3:51 p.m. in London today, according to data compiled by Bloomberg.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at

To contact the editor responsible for this story: Paul Dobson at

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