Concerns over Italy’s fiscal health is the major focus for today. Deputy Prime Minister Matteo Salvini’s comments confirmed that European Commission is considering to fine the country EUR 3B for breaking EU fiscal rules. European Economic Commissioner Pierre Moscovici was said to be in favor of “dialogue than sanctions”, but there was no confirmation on such position.
Italian 10-year yield surges strongly today and is up 0.1284 at 2.713. On the other hand, German 10-year yield down -0.015 at -0.144, after hitting as low as -0.16. US 10-year yield is dragged down through 2.3 handle too.
Reactions in other markets are muted though. Entering into US session, Yen is so far the strongest one but it’s held above last week’s lows against all major currencies. There is no strength seen in Swiss Franc too, arguing that risk aversion is not totally back yet. For now, Australian Dollar follows Yen as the second strongest. Canadian is the weakest one for today, followed by Franc.
In Europe, currently:
- FTSE is up 0.05%.
- DAX is down -0.28%.
- CAC is down -0.42%.
- German 10-year yield is down -0.015 at -0.144.
Earlier in Asia:
- Nikkei rose 0.37%.
- Hong Kong HSI rose 0.38%.
- China Shanghai SSE rose 0.361% to 2.909.91, regained 2900.
- Singapore Strait Times dropped -0.17%.
- Japan 10-year JGB yield dropped -0.0038 to -0.07.
