Eurozone: Risk sentiment largely unmoved – Danske Bank

In the euro zone, risk sentiment has so far been largely unmoved by the increasing likelihood of a coalition government formed by the two anti-establishment parties in Italy, , the Five-Star Movement and Northern League, according to analysts at Danske Bank.

Key Quotes

“The two parties are due to present a possible government program today which would reportedly (and unsurprisingly) include cutting taxes and boosting spending. However, Italian government-bond markets - and the single currency - are little moved by this prospect. While the 10Y yield edged a tad higher last week, it currently stands just above the 1.85% mark, notably down from the 2%+ levels seen at the start of the year.”