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PowerShares DB Italian Treasury Bond Futures ETN (ITLY)

  • Oct. 2, 2013, 4:31 AM
    • Shares in Italy are bucking a weak European trend and are +0.7%, while 10-year bond yields are -7 bps at 4.35%, ahead of a vote of confidence in the country's parliament today that could result in fresh elections.
    • However, Prime Minister Enrico Letta, who is from the left-of-center Democratic Party, could receive support from 40 senators from Silvio Berlusconi's People of Freedom (PDL) group despite the former PM instructing his party to vote against the government.
    • Yesterday, PDL deputy and party secretary Angelino Alfano said the party should back Letta.
    • Berlusconi withdrew his support from the government over the weekend and faces a vote on Friday over whether he should be expelled from the Senate following a conviction for tax fraud.
    • ETFs - Stocks: EWI. Bonds: ITLT, ITLY
    | Comment!
  • Oct. 1, 2013, 3:37 AM
    • Facing rebellion in the ranks of his People of Freedom Party (PDL) over his withdrawal of support for the Italian ruling coalition, Silvio Berlusconi is prepared to back the government in a no-confidence motion tomorrow if Prime Minister Enrico Letta agrees to elections in November.
    • However, it's not certain whether Letta will agree to the conditions.
    • Italian markets are shrugging off the political crisis today, with the MIB +0.7% and Italian 10-year bond yields +1 bps to 4.58%.
    • ETFs - Stocks: EWI. Bonds: ITLT, ITLY
    | Comment!
  • Sep. 30, 2013, 3:30 AM
    • Italian shares plunge 2.25% in early trading, while ten-year bond yields climb 8 bps to 4.65% following Silvio Berlusconi's decision over the weekend to withdraw his support for the ruling coalition and pull five ministers out of the cabinet.
    • Prime Minister Enrico Letta is set to request a parliamentary vote of confidence for Wednesday as he looks to save his government and avert new elections. One possible hope is that disaffected members of Berlusconi's People of Liberty will back Letta.
    • The crisis comes as the former PM faces a vote over whether he should be expelled from the Senate following his conviction for fraud.
    • ETFs - Stocks: EWI. Bonds: ITLT, ITLY
    | 1 Comment
  • Sep. 28, 2013, 9:54 PM
    • In Italy, Silvio Berlusconi withdraws support for Prime Minister Enrico Letta's government, as all five center-right ministers pull out of the coalition.
    • For his part, Berlusconi blames Letta's inability to forge an agreement on fiscal measures. The parties' failure to reach a deal on Friday means a 1% sales tax hike will go into effect on Tuesday.
    • Letta (of course) says Berlusconi is attempting to turn attention away from his tax-fraud conviction: "In order to justify his crazy and irresponsible move, aimed exclusively at covering his personal problems, Mr. Berlusconi is trying to invert responsibilities, using the sales tax as an alibi."
    • Whatever the case, it's bad news for the country (and likely for its financial markets) as Letta will now have to consult with President Giorgio Napolitano on whether to call for new elections or attempt to forge a new coalition.
    • More here
    • Equity ETF: EWI.
    • Bond ETFs: ITLY, ITLT.
  • Sep. 26, 2013, 7:29 AM
    • European markets are quiet with the exception of Italy, where the MIB index is off 1.5% as President Giorgio Napolitano canceled an appearance at a conference today amid "disturbing political developments."
    • Silvio Berlusconi's supporters - part of the governing coalition - have threatened to bring down the government if the now-criminally convicted Berlusconi is stripped of his Senate seat.
    • In the meantime, rumors make the rounds of another downgrade to Italian debt. Yields are quiet, the 10-year up a couple of basis points to 4.25% - the low part of its range YTD.
    • Equity ETF: EWI.
    • Bond ETFs: ITLY, ITLT.
  • Sep. 12, 2013, 4:36 AM
    • Italian industrial output unexpectedly dropped 1.1% on month in July from +0.2% in June and badly missed consensus of +0.3%.
    • On year, production -4.3% vs -2.1% and -2.5%.
    • The wretched figures may have put paid to any hopes that Italy will emerge from its longest post-war recession in Q3, especially as industrial output closely correlates to GDP in the country.
    • The FTSE MIB takes a dive and is -0.5%, but 10-year bond yields are little changed at 4.53%.
    • ETFs - EWI, ITLT, ITLY. (PR)
    | Comment!
  • Sep. 11, 2013, 4:25 AM
    • A cross-party Senate committee in Italy has held off from sending a vote to the main chamber over whether Silvio Berlusconi should be thrown out following his conviction for fraud. Discussions are due to continue tomorrow.
    • Berlusconi's center-right People of Freedom (PDL) party has threatened to bring down the ruling coalition, of which it is a member, if Berlusconi is expelled from the Senate. The left-wing Democratic Party (PD), whose leader Enrico Letta is prime minister, believes Berlusconi should be thrown out.
    • Financial markets have generally remained calm while the dispute has played out, although government bond yields have crept up over the past few weeks and yesterday overtook those of Spain for the first time in 18 months.
    | Comment!
  • Aug. 30, 2013, 4:35 AM
    • Italian unemployment slips to 12% in July from 12.1% in June and vs consensus for a rise to 12.2%.
    • The employment rate was 55.9% and the inactivity rate 36.4%. (PR)
    • Italian shares (EWI) -0.9%.
    • Bond ETFs: ITLY, ITLT
    | Comment!
  • Aug. 29, 2013, 4:57 AM
    • Italian Prime Minister Enrico Letta has pledged to scrap an unpopular levy on primary residences this year and replace it with a municipal tax in 2014.
    • The cancellation of the tax was a key demand from Silvio Berlusconi's PDL to remain in the government. Their other major requirement is that Berlusconi is not thrown out of the Senate for his conviction for tax fraud.
    • The EU, meanwhile, wants to know how the government will offset any revenue lost because of the tax move so that it will meet its budget commitments.
    • Italian shares (EWI) are +1% while 10-year bond yields (ITLY, ITLT) are flat at 4.4%.
    | Comment!
  • Aug. 26, 2013, 5:05 AM
    • Members of Silvio Berlusconi's center-right PDL party have again threatened to bring down the ruling coalition, of which the group is a member, if the Senate votes to expel the former prime minister following his conviction for tax fraud.
    • A vote is due next month.
    • The political uncertainty has hit Italian stocks (EWI), which are -1.8%. Ten-year bond yields (ITLY, ITLT) are +5 bps at 4.38%.
    | Comment!
  • Aug. 19, 2013, 3:31 AM
    • Silvio Berlusconi has threatened to bring down Italy's government, of which his PDL party is a member, if he is expelled from the country's Senate following his conviction for fraud.
    • While the ruling foresees such an exit for Berlusconi, a parliamentary vote is required.
    • The PDL has also said that the coalition's survival depends on the repeal of an unpopular property tax. However, Prime Minister Enrico Letta has said he won't support any measure that would increase Italy's debt. He has also warned that the collapse of the government would undermine the economy.
    • Shares are -0.2%, while yields on 10-year Italian bonds are +4 bps at 4.23%.
    • ETFs - Stock: EWI. Bonds ITLY, ITLT.
    | 1 Comment
  • Aug. 4, 2013, 1:55 AM
    • Silvio Berlusconi's People of Liberty (PDL) party is considering a mass resignation from parliament unless Italian President Giorgio Napolitano pardons Berlusconi for his conviction for tax fraud. Such a move would bring down the ruling coalition, of which the PDL is a junior partner.
    • The PDL's threat comes after Italy's High Court upheld Berlusconi's conviction and a four-year prison sentence, which the former prime minister is anyway unlikely to serve. A pardon would also enable Berlusconi to avoid a possible ban on holding public office.
    • Italian shares (EWI) closed -0.2% on Friday following the High Court's decision, although 10-year bond yields (ITLT, ITLY) fell 1 bps to 4.26%.
  • Aug. 2, 2013, 7:41 AM
    • Shares in Italy (EWI) are -0.1% following the decision yesterday by the country's High Court to confirm Silvio Berlusconi's conviction for tax fraud and a four-year prison sentence, which he's anyway unlikely to serve.
    • The high court sent a ban on Berlusconi holding public office back to a lower court for review.
    • The ruling exacerbates the fissures within the ruling coalition, with members of Berlusconi's People of Liberty group threatening to bring the government down if the conviction were upheld. Members of the Democratic Party of PM Enrico Letta don't like being allied to Berlusconi.
    • Italian bonds (ITLY, ITLT) are just as tame as stocks, with 10-year yields down 2 bps at 4.35%.
    | Comment!
  • Jul. 10, 2013, 1:38 AM
    S&P yesterday cut Italy’s credit rating from BBB+ to BBB, or two levels above junk, with the outlook remaining negative. S&P cited "a further worsening of the country's economic prospects coming on top of a decade of real growth averaging -0.04%," as well as an impaired financial system, as reasons for the downgrade. Italy needs to raise over €30B in debt this month.
    | Comment!
  • Jul. 4, 2013, 9:51 AM
    European bond yields drop following Mario Draghi's press conference, with the falls in the periphery particularly sharp. Spanish 10-year yields -14 bps to 4.65%, Portugal -27 bps to 7.2%, Italy -11 bps to 4.41%, France -6 bps to 2.24% and Germany -5 bps to 1.62%. U.K. gilts -4 bps to 2.36% following the BOE's dovish statement earlier. Treasurys are +3 bps at 2.5%.
    | Comment!
  • Jun. 21, 2013, 4:21 AM
    After going haywire yesterday along with much else, bond markets to be much calmer today. The 10-year Treasury yield is flat at 2.42%, France flat at 2.27%, Germany +0.01 bp to 1.68%, Italy +0.01 bp to 4.56%, Portugal -1 bp to 6.4%, Spain flat at 4.86%, Japan +0.02 bps to 0.88%.
    | 1 Comment
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ITLY Description
The PowerShares DB Italian Treasury Bond Futures Exchange Traded Notes (Symbol: ITLY), (collectively, the "PowerShares DB BTP Futures ETNs," or the "ETNs") are the first exchange-traded products to provide investors with leveraged or unleveraged exposure to the U.S. dollar value of the returns of an Italian bond futures index.
See more details on sponsor's website
Country: Italy
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