Italian bond yields rise, euro dips after EC cuts Italy growth forecast

LONDON: Italian government bond yields rose to a session high on Thursday, while the euro dipped after the European Commission cut Italy's growth forecast and said it anticipated a jump in the country's structural budget deficit.

Italy's 10-year bond yield rose to 3.404 percent, up six basis points on the day. The euro turned negative, slipping 0.1 percent to $1.1412 but remaining above the session low.

The European Commission forecast the Italian economy would grow more slowly in the next two years than Rome thinks, making government budget deficits much higher than assumed by Italy while public debt would be stable rather than decline.