Italian two-year yields fall to lowest levels in more than a month
Italy's economic minister Giovanni Tria commented over the weekend that Italian bond yields will fall once the government starts to implement its policies to boost the economy via "prudent" fiscal measures.
That will help to provide some relief for European periphery markets in general and also lend a helping hand to the euro - in the sense that matters are not getting worse when it comes to the Italian budget. Although Italy's budget worries have been largely ignored by euro traders, it's still something to keep an eye on in case it starts to impact the single currency as it did back in May.
Much like last week, Tria's soothing words is helping to calm investors but once again it must be said, the budget target is one thing and the government's fiscal plans is another. If the two don't see eye to eye, the target proposal would count for little at the end of the day.
The rise in BTPs here is also helping to underpin Italian bank stocks as well. FTSE MIB is now up by 0.5% on the day.
