Rome: Italy’s government bond yields were set on Friday for their best week in over a year thanks to heightened expectations of European Central Bank monetary easing soon and relief that Rome has avoided EU disciplinary action over its fiscal position. As bond yields across the euro area this week hit fresh milestones, Italy delivered its own eye-popping moves. Italy’s 10-year bond yield has slid 45 basis points and is set for its biggest weekly fall since June 2018. It was 4 basis points lower on the day at 1.63pc on Friday, having hit its lowest since 2016 on Thursday. The closely-watched gap over safer German government bond yields is hovering around 200 bps and close to its tightest in over a year. Two-year Italian bond yields, down 3 bps on Friday at 0.03pc, briefly turned negative earlier in the week.
