* Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr
LONDON, June 19 (Reuters) - Renewed policy easing by the European Central Bank will ease the situation in primary markets for Italy and a restart of asset purchases by the ECB could have the same impact as its 2014 quantitative easing announcement, Italy’s debt chief said.
ECB President Mario Draghi on Tuesday made one of the biggest policy reversals of his eight-year tenure, flagging more stimulus if inflation failed to pick up. That has sent euro zone bond yields plunging, including in debt-laden Italy.
“If QE starts again, it could have the same impact as the last announcement in 2014. It will ease the situation in primary markets for us,” Davide Iacovoni, head of debt management at the Italian Treasury, told Reuters on Wednesday.
Speaking on the sidelines of a conference in London, Iacovoni cautioned, however, that Draghi only said the ECB may restart asset purchases, so it may not transpire.
Reporting by Abhinav Ramnarayan; editing by Sujata Rao