July saw several double-digit declines in 10-year government bond yields, amid a flurry of political developments and the lead up to monetary policy decisions.
In Southern Europe, Italy's 10-year mid-yield plunged by nearly 54 basis points to end the month at 1.54%. The decline coincided with an ongoing dispute over government spending between the European Commission and the country's populist coalition government. In the middle of the month, finance minister Giovanni Tria stated that there was support for changes to fiscal rules among European leaders.
The yield on Greece's 10-year benchmark bond also experienced a