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Italy and Spain shake off ‘periphery’ tag as borrowing premiums hit 16-year low

By Mark GrundellFinancial TimesDecember 27, 2025 at 5:00 AMBullish1 min read
Global Markets Context

Source: Financial Times. Market sentiment on this story is bullish. Key themes: Italy bonds, Spain bonds, Eurozone debt, borrowing costs, sovereign debt.

Analyst sentiment: Bullish

Italy and Spain's borrowing costs, specifically the premium investors demand to hold their debt over safer German bunds, have fallen to their lowest level in 16 years. This indicates a significant improvement in market confidence regarding the fiscal health and economic stability of these once-beleaguered Southern European economies, moving them away from their 'peripheral' classification within the Eurozone.

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