Italian bond yields fall after ECB sources say TLTRO seen as priority

LONDON: Italian government bond yields fell on Tuesday after European Central Bank sources told Reuters that cheap long term loans for banks remain a priority.

Italy's 10-year bond yield fell almost two basis points to 2.74 percent, while its gap over 10-year German Bund yields briefly tightened and was last at 254 basis points.

Some ECB policymakers are reluctant to alter their guidance on interest rates before Mario Draghi's term as ECB chief expires on October 31, the sources said.