- Italian government debt rallied on Monday, with yields on benchmark 10-year bonds falling 4 basis points to 2.122%, after it was revealed that the EU was set to pause its budget crackdown on Rome.
- The bloc will allow Italy to increase its deficit if it helped the country’s economy, Deputy Prime Minister Luigi Di Maio confirmed to Il Corriere della Sera.
- The move potentially de-escalates a stand-off that has sparked investor anxiety about the country’s debt burden.
- ETFs: EWI, HEWI, DBIT, FLIY