EU Commission likely to give a negative opinion on the Italian budget – Danske Bank

Analysts at Danske Bank note that yesterday, Italy sent a letter to the EU Commission reaffirming its fiscal stance but opening up for a dialogue with the EU on the budget for 2019.

Key Quotes

“As a result, our base case is that the Commission will give a negative opinion on the Italian budget draft and ask for a revision, maybe as soon as today.”

“The relief rally in the Italian government bonds yesterday did not last long as 10Y Italian government bond s reversed the gain in the morning and ended more or less unchanged.”