LONDON, Dec 19 (Reuters) - Italy's 10-year government bond yield fell towards one-month lows in early Monday trade after troubled Italian bank Monte dei Paschi made a last-ditch attempt to raise 5 billion euros ($5.2 billion) by year-end and avoid a state bailout.
Monte dei Paschi said on Sunday it would offer new shares for sale between Monday and Thursday to raise new funds.
The news bought some comfort to Italian government bond markets, with 10-year bond yields falling 3.5 basis points to 1.88 percent, heading towards a one-month low hit last week at around 1.77 percent.
Top-rated German Bund yields opened little changed on the day at 0.32 percent.
Reporting by Dhara Ranasinghe