Italian yield drops to 2-1/2 month low as Rome cuts deficit goal

LONDON: Italian government bond yields dropped across the board on Thursday after the country's government cut its deficit goal for 2019 and Prime Minister Giuseppe Conte said he expected a positive response from the European Union.

Italy's 10-year government bond yield dropped to its lowest level in 2-1/2 months as a result, trading at 2.957 percent before settling at 2.98 percent, still down three basis points on the day.

Two-year and five-year Italian yields were lower by 4 basis points each.

The Italy/Germany 10-year bond yield spread was at its tightest since October 1 at 270 basis points.