LONDON: Italian government bonds rallied on Monday after S&P Global affirmed the country's sovereign credit rating at BBB, two notches above junk territory.

Italy's 10-year bond yield dropped five basis points to 2.53 percent, while the closely-watched spread over Germany was at 254 bps, its tightest in over a week and well off last week's two-month high of 269 bps.

Copyright Reuters, 2019

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