TELETRADER News
10/3/2018, 11:10 AM (Source: TeleTrader)
more TeleTrader news

Italy's bonds rebound on news of lower target deficit

Signs of a letdown on Wednesday in the European Union's quarrel with Italy over the national budget helped the euro up, looking to break a five-day streak of losses versus the dollar and the yen. The benchmark stock index in Milan rebounded and prices of government debt took back what they lost yesterday at the height of the dispute, where heated discussions were reportedly conducted also within the cabinet.

The deficit target was apparently left at 2.4% for next year, but economic policy makers are said to have given up on leaving it that high later on. As Prime Minister Giuseppe Conte is preparing to gather his deputies and ministers for further discussions, insiders revealed the target should be driven down to 2% by 2021, which compares to this year's 1.6%.

Italy's two-year note yield dropped 11.5 points at 11:08 am CET and reached 1.312%, after touching 1.183% at one point. The yield on ten-year notes fell 6.7 points to 3.376%, following a session low of 3.294%. The measure was down 3.7 points at 3.788% for the thirty-year bond. Yields move in different directions from prices of debt securities.

Baha Breaking News (BBN) / IT