Salvini's earlier comment helping to keep bonds bid as the session begins
Mind the gap, please. 10-year yields have opened by about 7.5 bps lower to start the day as investors are cheering the news earlier that Salvini may consider budget revisions. The report says that Salvini may be willing to lower the amounts spent on citizens' income and that's a major concession in terms of where we are at in budget talks right now.
The positive start for Italian bonds will help to underpin bank stocks later at the open and will only serve to give a further boost to risk sentiment on the day. In terms of currencies, the news here will at least alleviate some pressure off the euro and help it hold gains against the dollar and yen for the time being.
