Further comments by Italy's finance minister Giovanni Tria
- Does not think that the deficit forecasts are so shocking
- Government has repeatedly made clear its commitment to the euro
- Deficit to be lower if government is not able to implement its plans
The last comment there may help cushion the blow a little but the damage has already been done. Italian bonds are being taken to the cleaners again as 10-year yields rise to close to 3.70% now. That in turn has weighed on the FTSE MIB as it leads losses in European equities now down by 0.6% on the day.
As a result, that is hurting risk sentiment across markets too with the yen and dollar benefiting from this. The euro is suffering the most as a result with EUR/USD now down to session lows of 1.1444 on the day.
