Italian govt bond yields fall after service sector returns to growth

LONDON: Italian government bond yields fell up to five basis points across the curve on Tuesday, reversing earlier rises, after data suggested that Italy's service sector returned to growth in February.

Ten-year Italian government bond yields fell to one-month low of 2.697 percent while its two-year government bond yield was down as much as five basis points to 0.305 percent.

Italy's services sector expanded slightly in February after contracting the month before, although new business orders fell into negative territory for the first time in four years, a survey showed on Tuesday.