Borrowing costs are dropping but euro gains may be limited by SNB reserve diversification.
Italian 10-year yields down 8 bps to 5.72% after touching as high as 5.90% early in the day.
Spanish 10s now down 1 bp on the day to 6.47% from a high of 6.56%. Spanish yields remain constrained in their recent range.
Better action is seen in the two-year space where Italian yields are down 14 bps today as the market anticipates ECB buying at the short-end.
