Italy's 2-year bond yields are down almost 10 bps on the day
That's a relatively positive sign for Italian bonds following earlier losses at the start of the day. Yields were up by about 4 bps to begin European trading but now we're seeing a change in tone as investors are of the belief that Tria will have his way and that the Italian budget is set for a fiscal deficit of just below 2%.
The government will be unveiling the first draft of its fiscal plans tomorrow in an economic document so that will be the ultimate decider of how Italian assets will fare ahead of the proposal to be sent to the EU in October.
