German-Italian yield spread widens sharply again today on fear of expansionary budget again in Italy and renewed risk of showdown with EU. The trigger was Italian Deputy Prime Minister Matteo Salvini’s pledge yesterday, to be prepared to let budget deficit rise above EU limits if it were to boost employment.
Italian 10-year yield is currently up 0.072 at 2.807. That compares to 2.52% low this month, and 2.344 low this year.
German 10-year yield is currently down -0.041 at -0.108.
EUR/JPY finally resume recent fall by taking out 122.48 temporary low.
