Draghi 2.0: Negative Rates for Italy

Mario Draghi is likely to become the next technocratic leader of Italy.  His fame and respect in Brussels from his days leading the European Central Bank and saving the European Union are more important to the success of his tenure than his sky-high fame and respect in Italy.  His reputation is enough to continue the established rally in Italian markets and may see the 10 YR bond go negative.  However, his reputation is unlikely to contribute to lasting reform in Italy and the rally will likely reverse on that realization.