Italian bond yields hurt by lower economic forecasts

MILAN: Italian government bond yields spiked higher on Wednesday with a trader citing worsening official forecasts for Italy's economic growth and budget deficit this year as a reason for the move.

Sources have told Reuters the government is set to revise its 2019 growth forecast to just above zero.

Il Sole 24 Ore daily reported on Wednesday the government targeted a growth of around 0.2 percent this year with a deficit of 2.3 percent of gross domestic product even after taking into account a planned package of fiscal stimulus measures.