LONDON, Oct 9 (Reuters) - Italy’s government bond yields rose to new highs on Tuesday after Economy Minister Giovanni Tria addressed the Italian parliament on the government’s budget plans.
Tria called for a constructive discussion with Brussels over the budget and said Italy’s structural deficit will recover once GDP and employment returns to pre-crisis levels.
Italy’s five-year bond yield rose to 3.042 percent , its highest level in almost five years, while 10-year bond yields hit a new 4-1/2 year high at 3.63 percent .
Analysts said talk of a report that the European Commission was likely to reject Italian budget plans was also putting upward pressure on yields. (Reporting by Dhara Ranasinghe, Editing by Abhinav Ramnarayan)