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The government will revise its budget plans by next week, and may be able to save four billion euros from its pension and income support programme, cabinet undersecretary Giancarlo Giorgetti said.
Italy's two-year government bond yields were last down 11 basis points at 4-1/2 month low of 0.54 percent.
Italy's 10-year government bond yield dropped almost 10 basis points to 3.05 percent, a more than two-month low.