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ORIGINAL POST, SEE UPDATES BELOW: Markets are mostly going nowhere this morning. European indices are drifting higher, and US markets are flattish.But Italy is a standout winner right now.
The FTSE MIB index is up over 1.1%, and Italian bonds are getting a solid bid. The 10-year yield is back down to 6.768%. It was just close to 7.2% last week, so this is some nice improvement.
Also seeing some nice improvement on the short end, with the Italian 2-year hitting a new post short-term low yield.
Shares of the major bank UniCredit are up 4.6%.
Later on this morning, the ECB will make its latest interest rate move. It’s expected to hold things flat.
UPDATE: The rally is spreading across Europe. Italy’s FTSE MIB index is now up 2.5%. Germany is now up 1.1%. Spain just held a strong auction, where it sold twice as much debt as it planned. Short-term yields are plunging. All in all, very bullish action.
For a look at Spain’s big action, see here.