Analysts at Danske Bank point out that both US and Italian yields came off a bit from recent highs for separate reasons and as Brexit optimism grew.
“Overall it would have been a rather uneventful session had it not been for Trump . The US President - again - expressed dissatisfaction with the pace of Fed hikes given what he considered a lack of inflationary pressure.”
“Following the warning from the EU Commission over the weekend that the Italian fiscal budget not breach eurozone spending, the League's Matteo Salvini accused both EU officials and speculators of seeking to bring down Italy. However, spread widening eased after Italy's Finance Minister Giovanni Tria said that the government is worried about the 'unacceptable' yield spread.”
“US yields came off a bit after reaching 7Y highs last week and the 10Y yield is just off the 3.21 mark. During the day, the Treasury curve flattened led by close to a 3bp drop in the 30Y.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.