Peter Chatwell

Italian and Greek government bond yields fell on Monday, as encouraging economic data and an agreement by the US and China to resume trade talks boosted demand for riskier assets.
After a slow start, buying gathered momentum and 10-year Italian government bond yields fell 8 basis points to 2 percent, their lowest since May 2018.

The yield on a Greek government bond maturing in 2019 fell on Monday to its lowest level since it was issued three years ago, as Athens prepared to end a three-year exile from financial markets.

Neal Armstrong & Lucy Meakin

European government bonds dropped as reports showing annual inflation quickened in eight German states curbed speculation the central bank will announce a debt- purchase plan to revive the economy as soon as next month.