It's a reassuring sign for world bond markets as they brace for the European Central Bank to this week signal that it will take small steps away from an ultra-easy monetary policy stance that has long underpinned bond yields. The gap between Italian and German 10-year yields shrunk to its smallest in more than two months at 156 basis points. Japanese government bond yields erased an early rise as Abe's election win on Sunday reinforced a view his reflationist economic policies will remain. That set the tone for trade in European bond markets, with most 10-year bond yields down 1-3 basis points. In Germany -- the euro zone's benchmark bond issuer -- 10-year bond yields fell as much as 2 bps to 0.43 percent , pulling back from roughly one-week highs at 0.46 percent.

Source: Times of India October 23, 2017 11:15 UTC