WSJ, European funds buy Italian and Spanish bonds

European funds are increasing their exposure to Italian and Spanish sovereign bonds following the announcement by the European Central Bank of a new unlimited bond-buying programme last Thursday, the Wall Street Journal reported on Monday. "Fund managers in Europe have invested more of their money in high-yielding euro-zone sovereign bonds in the run-up to and after the European Central Bank's approval last week of a plan allowing it to make unlimited purchases of government bonds from struggling countries in the currency bloc," said the paper. However it added that "It is too early to say whether the interest from traditionally long-term investors such as asset managers will last beyond this initial burst of optimism".