Italian yields fall as ECB decision awaited

LONDON: Italian government bond yields fell on Wednesday, benefiting from a slightly firmer tone for riskier assets before a European Central Bank meeting on Thursday, at which many in markets expect policymakers to take measures to stem the debt crisis.

"It's just generally a risk-on environment and people are short covering. It's very small volumes. The main thing is Bunds have been a bit beaten up ahead of the Bobl auction."

Italian 10-year government bond yields were last down 12 basis points on the day at 5.96 percent while 5-year yields fell 17 bps to 5.37 percent. Spanish yields were 5 bps lower at 6.73 percent.