EUR/USD is apparently lifted by the sharp fall in Italian yield today, the the rebound quickly fades.
10 year yield hit as low as 3.318 but recovers. It’s now trading at 3.437, down -1.444. It’s notably lower than last week’s high of 3.784. However, it should also be noted that German 10 year yield is now at 0.469, up 0.006. German-Italian spread 297, below 300 but still close to 300. That is, yes, concerned eased, but sentiments haven’t really turned around. The next move will depend on the response from Italy to EU and then EU’s counter response, regarding the budget.
