5/31, 10:25 AM (Source: TeleTrader)
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Italian bonds deep in red amid GDP revision lower

Stocks at the exchange in Milan held onto strong losses on Friday and the bond selloff marginally eased after statistics showed the Eurozone's third-largest economy technically emerged from recession, but barely. Istat's final reading of gross domestic product placed the growth rate for the first quarter at just 0.1%, after the flash number was measured at 0.2%. However, the level was down 0.1% from one year before against the initial print indicated a rise by 0.1%.

The government in Rome is preparing a statement for the European Commission, which has started an infringement procedure over allegedly excessive spending.

The two-year bond yield surged 7.3 basis points to 0.709% at 10:21 am CET after hitting 0.755%. The ten-year gauge jumped 5.4 points to 2.705%. The 30-year yield advanced 3.4 points to 3.567%. The moves widened the spread against benchmark German Bund yields, which tumbled 2.5 points to a negative 0.196%, near a record low, while equivalent futures climbed 0.13%. The euro added 0.19% to sell for $1.11498 and 0.04% to £0.88314. The FTSE MIB equity index dropped 1.23% at 10:09 am CET.

Breaking the News / IT