LONDON, April 4 (Reuters) - Italy outperformed the rest of the euro zone government bond market on Tuesday after a European Commission spokesperson said late on Monday there could be a solution on a bailout for two struggling Italian lenders.
The Commission said it was in “constructive talks” with the Italian authorities and the European Central Bank on a request for state support by Banca Popolare di Vicenza and Veneto Banca.
Italy’s 10-year government bond yield dropped 4 basis points to 2.29 percent in early trade on Tuesday.
Spanish and French bond yields also fell, dropping 2 bps, while most other euro zone bond yields were also lower on the day. (Reporting by Abhinav Ramnarayan, editing by Nigel Stephenson)