Italy tops week of meagre bond returns - Salomon .
LONDON 1996-12-06
High-flying Italy topped the league in a week of meagre returns on government bonds , Salomon Brothers said on Friday .
In local currency terms , Italian BTPs offered returns of 0.85 percent in the week ended on Thursday , with fellow high-yielder Sweden close behind on 0.80 percent .
The weekly government bond index rose 0.07 percent in local currency terms .
France managed third place with 0.68 percent in the 16-nation world government bond index .
Canada 's were the worst performing bonds .
They lost 2.21 percent , depressed by a wave of new Canadian supply .
Returns on Treasuries were also in negative territory at minus 0.24 percent , the poorest result after Canada and British gilts which lost 0.28 percent .
Australia was the only dollar-bloc country in the table to eke out a positive return , albeit a paltry 0.02 percent .
German Bunds were not much better , offering returns of 0.05 percent , while Japanese government bonds managed a 0.38 percent gain .
Spanish bonds , which had been top performers in Salomon Brothers ' league table for November as a whole , turned in a more subdued weekly performance with a return of only 0.27 percent .
In U.S. dollar terms , Japan was the only country to give positive returns at 1.35 percent .
France lost 0.37 percent , followed by Italy on minus 0.59 percent .
The biggest losers in dollar terms were British gilts , which shed 3.41 percent , Canada with minus 3.03 percent and Australia at minus 1.54 percent .
Salomon 's bond index is calculated using all government bonds with over one year to maturity , weighted for market capitalisation .
Only bonds freely available to institutional investors and with a certain minimum amount outstanding are included .
Returns take account of price moves and accrued interest .
-- Stephen Nisbet , International Bonds +44 171 6320