10-year yields are up to near 3-month highs
While 5-year yields are trading up by more than 5 bps on the day to highest levels since early June. The negative showdown on budget talks with the EU continue to be the thorn for Italian assets and I expect Italian stocks to turn negative from here.
And this is just the start for Italian assets. The budget target and figures are set to only be finalised at the end of September so in between now and then there is plenty of headlines and rumours that will lead to volatile swings in price.
Meanwhile, the yields spread between Italian and German 10-year bonds have widened by 3 bps today to 282 bps:
Well, in Tria's eyes, they're still seen as narrowing apparently.
