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Tria also confirmed the government’s goal of cutting Italy’s debt this year and in 2019, which helped strengthen Italian banks. Italian current debt exceeds 130% of gross domestic product.
Santander GCB rates strategist Luca Jellinek believed that much of the recent upward moves may have been due to short positions being squeezed out – heavy shorts were forced to buy back into the market and fuel the upward trend.
“There were a lot of shorts in Italy,” Jellinek told Bloomberg. This rally is “way too much.”
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