LONDON May 26 Italian bond yields fell on
Monday as Prime Minister Matteo Renzi's centre-left Democratic
Party looked set to win European parliamentary elections, easing
concerns of a victory by the anti-establishment 5-Star Movement.
Signs of the outcome in Italy were in sharp contrast to much
of Europe where Eurosceptic nationalists scored stunning
victories in elections in France and Britain on Sunday.
Critics of the European Union more than doubled their seats
in a continent-wide protest vote against austerity and
Renzi's party had a strong lead over the anti-establishment
5-Star Movement of former comic Beppe Grillo, early projections
Italian 10-year bond yields were 9 basis
points down at 3.06 percent with Spanish equivalents 6 bps lower
at 2.93 percent.
Greek 10-year yields were 2 bps lower at 6.51 percent
after the anti-austerity Syriza movement of Alexis
Tsipras won the vote but failed to deliver a knockout blow to
the government of Prime Minister Antonis Samaras.
French yields were flat at 1.82 percent with the market
shrugging off for now the National Front's triumph at the
(Reporting by Emelia Sithole-Matarise)