Italy 10-year bond yields are on the verge of surpassing yesterday's high
10-year yields have now moved higher on the day again to 3.62% and looks to be on the cusp of breaking higher again. Italy's finance minister Giovannia Tria said that the government will stick to the 2019 deficit target of 2.4% earlier and that is enough to set the status quo in markets.
The thing to watch out for in the move in yields is European equiities. The DAX has already pared all of its earlier gains and is now flat on the day. A further decline in the FTSE MIB could see some spillover effects and that in turn will weigh on risk sentiment across markets.
For currencies, watch out for moves in the yen if this starts to materialise into something bigger.
