Italian bonds were also gaining after Italian Prime Minister Mario Monti announced $40.3 billion in austerity and growth measure cuts to help lower the country’s deficit.
“The market is betting a lot on a positive outcome at the end of the week after the leaders’ summit and that’s supporting peripheral bonds,” Gianluca Ziglio, interest-rate strategist at UBS AG, said in a Financial Post article. “The Italian budget measures seem to go in the right direction, especially in terms of the size.”
PowerShares DB Italian Treasury Bond Futures ETN
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Max Chen contributed to this article.