2-year yields are up 40 bps from the lows today
BTPs are losing some ground in the last half hour and that's also putting a bit of a drag in the euro as investors remain cautious.
The euro is back near to test 1.1700 against the dollar again - after having reached a high of 1.1724 earlier - as Italy 2-year bond yields climb back above 1% and is trading near 1.20% levels at the moment. The low today touched 0.79%.
As mentioned earlier, the real fear in Italy isn't over and even if a less euroskeptic cabinet is announced in the government formation, a fiscally irresponsible government can easily blow bonds out of the waters - especially since credit rating agencies are now just waiting to hit Italy with a juicy cut.
