LONDON Italy's government bond yields fell from 4-1/2 year highs and its stock market rallied on Friday after European Economic Affairs Commissioner Pierre Moscovici said he wanted to reduce tensions with Italy over the country's contentious budget plans.
* BTP/Bund spread falls from 5-1/2 year highs
(Updates with detail on Moscovici comments, price action)
LONDON The gap between Italian and German 10-year bond yield spreads hit its widest level in 5-1/2 years after Brussels stepped up pressure on the government in Rome to rein in its budget ambitions.
* EU to send formal warning letter to Italy on budget
(Adds background, quotes, updates prices)
LONDON A recovery in Italy's bond market fizzled out on Wednesday, with yields rising once again - this time on a report that the EU will say the draft Italian budget does not meet the bloc's guidelines, news of fresh supply and a selloff in risk assets.
* Oettinger says Italy budget doesn't meet EU guidelines
LONDON Long-dated Italian government bonds were being sold off on Wednesday after the government announced a buyback and reopening of longer dated issues, as global stocks markets came under renewed selling pressure and dented appetite for riskier assets.
LONDON Italian government bond yields dropped across the board on Tuesday, narrowing the spread over German peers, after comments from Economy Minister Giovanni Tria defending the 2019 budget boosted hopes he would remain in the turbulent government.
* Euro zone periphery govt bond yields - http://tmsnrt.rs/2ii2Bqr
(Updates pricing, adds detail on Portugal and Spain)
* Spanish bond yields rise on fiscal worries