Italy’s Salvini: Not discussing to cut deficit target by more than 0.2%

Last hour, the Italian Deputy Prime Minister Salvini was reported as saying that the government is not discussing to cut deficit target by more than 0.2%, implying that the Budget deficit goal will not be lower than 2.2%. The current target is set at 2.4%.

The Italian bond markets are seen reacting to Salvini's comments, with Italy's 10-yr yields dropping to the lowest levels since September while the Italian-German 10-year bond yields spread stood at 292 bps, fast approaching the 335 bps level reached on November 20^th.