Italian government bond yields fell below 7 percent on Wednesday as traders cited European Central Bank buying via their Securities Markets Programme and with Prime Minister designate Mario Monti expected to form a new government later in the day. Italian 10-year government bond yields were down around 28 basis points on the day at 6.95 percent, after rising sharply to above 7 percent in the previous session. The two-year Italian yield slumped 50 basis points to 6.21 percent. "They're heavily in on Italy and Spain, 2-10 years", one trader said. The spread between 10-year Italian and German government bond yields ... (full story)