Lower deficit promises see Italian borrowing costs fall

Italian borrowing costs have fallen early on Wednesday morning as investors digested news that Rome could lower its public spending in the coming years.

The yield on the 10-year Italian bond fell 3.31 percent at about 7.40 a.m. London time.

The market reaction followed reports by the Italian newspaper Corriere della Sera that the government is planning to lower public deficit from 2.2 percent in 2020, to 2 percent in 2021, from an expected 2.4 percent next year.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam