Juncker on Italy and Britain

  • Convinced we will be able to strike a Brexit deal

  • Italy has used all the budget flexibility instruments available in EU

  • Italy has spent 30 billion euros extra without sanctions

Sounds like Juncker is letting the cat out of the bag. He says a Brexit deal 'will be done' which really helps to put to bed the rumor that the EU is about to walk away.

Italian 10-year yields are up 6 bps to 3.61%. I just don't see how the EU is going to overrule the sovereign, elected government of Italy.