Italian Bond Yields set for biggest monthly fall in 3-years

Italy’s 10-year government bond yield was set on Tuesday to end October with its biggest monthly fall in more than two years.

A decision by the European Central Bank last week to extend its asset purchase programme well into next year, albeit at a reduced amount, has provided a powerful boost to peripheral bond markets in recent sessions. Friday’s surprise ratings upgrade for Italy by Standard & Poor’s has also boosted sentiment towards Italian bonds.

The 10-year Italian bond yield was 2 basis points higher at 1.86 percent in early Tuesday trade, not far off almost 10-month lows. It is down 30 basis points this month and set for the biggest monthly fall since July 2015.