2-year yields continue to fall on the day
Italy's bond market is still picking up the pieces after the dramatic last two weeks of May, and that recovery is still ongoing as we head into trading this week. 2-year yields are now down to under 0.70% to a low of 0.68% today, after going back up above 1% on Friday.
The market is so far giving Italy's new government the benefit of the doubt, and is joining the tone of positive risk sentiment that we're seeing so far today. The yields spread between Italy and Germany 10-year bonds have also fallen to 210 bps now, and that's something that will comfort investors somewhat - along with the recovery in periphery bonds as well.
