Eurozone government bond markets show muted reaction to the European Union's announcement that countries will be allowed to use full flexibility in fiscal rules to support their economies against the coronavirus. The market's overall picture remains corrective, with core and semicore yields rising and Italian and Greek yields falling, reversing Thursday's major moves after the European Central Bank's decisions and President Christine Lagarde's comments. The 10-year German Bund yield trades 15 basis points higher at -0.580%, same as before the EU's announcements. Italy's 10-year BTP yield is down 5 basis points at 1.718%, compared with 1.686% before the announcement. Core and semi-core bond yields trade by up to 17 basis points higher, indicating some retreat in risk aversion.
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