Italian 2-year bond yields open gap up by 13 bps
Not a good start to the day for Italian investors once again as bond yields open gap up. 2-year yields opened up by 13 bps but now sits about 9 bps higher compared to Friday's close. Uncertainty surrounding the viability of Italy's budget deficit proposal will continue to keep domestic assets trading in a volatile manner throughout October so expect more of this to come.
In turn, expect the euro to stay similarly pressured and rallies to be sold into as long as worries on the budget deficit persists. As mentioned last week here, it's going to be a long month ahead for both Italian assets and the single currency.
