LONDON, Oct 17 (Reuters) - Italian government bond yields fell further on Wednesday with two-year yields down eight basis points to one-week lows amid a stabilisation of global risk sentiment and the lack of fresh negative headlines over the country’s budget
Rome has officially approved its expansionary budget but markets are relieved that Economy Minister Giovanni Tria remains in office. While analysts see a high chance the European Commission will reject Italy’s budget, they said the lack of further shocks in Monday’s proposal had prompted further buying of government bonds.
Italy’s two-year government bond yields touched a low of 1.50 percent, while the 10-year yield slipped five basis points lower to 2.837 percent .
European share markets are set to open higher, mirroring earlier rises in Asia and the United States.
Reporting by Virginia Furness; editing by Sujata Rao