June 8, 2018 / 6:31 AM / 4 months ago

Italy's bonds under renewed pressure, German bond yields fall

LONDON, June 8 (Reuters) - Italian bonds came under renewed selling pressure in early Friday trade, with yields on two-year government bonds rising to their highest in 1-1/2 weeks.

Two-year Italian bond yields rose around 20 basis points (bps) to 1.775 percent, while a rise in 10-year yields pushed the gap over benchmark German Bund yields to around 265 bps - the widest in around 1-1/2 weeks.

Germany’s 10-year bond yield fell 5 bps to 0.43 percent as risk aversion in world markets boosted demand for safe-haven debt. (Reporting by Dhara Ranasinghe; Editing by Mark Potter)

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