Italy’s bond yields tumble on reports of lower deficits

LONDON: Italian government bond yields tumbled on reports that Rome plans to cut the budget deficit faster than expected, easing fears about the fiscal policy of the eurozone’s third-biggest economy.

Italy’s government foresees the budget deficit falling to 2.2% of gross domestic product in 2020 and to 2% in 2021 from the 2.4% expected next year, a government source from the right-wing League party said yesterday.