Italian bond yields fall on better risk sentiment

LONDON: Italian 10-year bond yields fell on Wednesday with appetite for risky assets in euro zone financial markets slightly higher following better than expected US factory data the previous day.

Italian 10-year bond yields were 6 basis points lower at 5.48 percent, pushing the spread over Bunds down to 378 basis points.

Although there were some prices in peripheral euro zone bonds on Tuesday, liquidity was poor with most markets closed for the May Day holiday.

Traders said they had seen a "reasonable" amount of buying on Monday and thought the trend was likely to continue.