LONDON Dec 7 Italian bond yields fell on
Wednesday after reports the government is preparing to rescue
ailing lender Monte dei Paschi as hopes of a private
Sources told Reuters the government is preparing to take a 2
billion euros controlling stake in the bank, while Italian daily
La Stampa reported the country is set to ask euro zone bailout
fund ESM for a 15 billion euro loan for Monte dei Paschi
and other struggling lenders.
Italy's treasury declined comment on the La Stampa
Ten-year government bond yields fell 5 basis points to 1.92
percent in early trading, just above three-week
lows of 1.89 percent hit on Tuesday.
German equivalents -- the euro zone benchmark -- were flat
at 0.37 percent.
(Reporting by John Geddie, editing by Nigel Stephenson)