LONDON, Oct 23 (Reuters) - Italian bond yields reversed an early-session jump on Tuesday after newspaper Il Messaggero reported that Rome would be prepared to adjust its budget if markets disappove.
The Italy/Germany 10-yr bond yield gap fells 10 bps from the day’s high to 303.7 bps, and Italian bond prices reversed earlier losses.
Two-year yields fell six basis points to 1.399 percent, having earlier risen 10 bps. The five-year yield fell four bps at 2.75 pct,.
Reporting by Virginia Furness