British fund managers have started buying Italian bonds again, after European Central Bank moves to make investment less risky.
The ECB has been buying the bonds to bring down the interest rate, which broke the much-feared 7 per cent barrier last year; they are now down to around 5.6 per cent. Andrew Cole, a director at Barings Global Multi Asset Group, said: "We've been doing these transactions over the past month. Yields are back to where they were in September. It feels a bit safer."