Italy's Salvini reiterates that government will not back down from budget plan
Comments by Italy's deputy prime minister Matteo Salvini
- Budget won't change
- Won't go back on pension reform, tax cuts
- "Absolutely sure" that yields spread won't reach 400 bps
Pretty much the same rhetoric coming out of Salvini here but it's not exactly soothing words for bond investors nonetheless. Meanwhile, we're also hearing more from Italian senator Bagnai as he says that domestic bonds are secure because there's no default risk on the horizon.
I think when you even start talking about default in general, it's a bad sign. The yields spread between Italy and Germany 10-year bond yields sits at 302 bps as we begin the day: