Italy's 2-year bond yields falls to its lowest level in a month
Tria's comforting words is continuing to help soothe investors as Italian bonds are trading at their highest levels in a month. But again, context matters in all of this.
At the end of the day, the government may present a budget proposal of less than the 3.0% limit and if Tria's words are to be believed it will be somewhere between 1.5% to 1.8%. That should be welcome news for investors, by right.
However, if the government insists on pushing forward with tax cuts, pension reform, and citizens' income it's tough to envisage how all of that fits into their plans to be fiscally responsible as per what the budget proposal will be.
In time, we'll see how all this plays out. But for now, the "positive" headlines are what is going to matter for investors. Should the government start with the above fiscal plans into 2019, we may start to see some nervousness creep back into the market.
