Italian notes and bonds stayed higher as borrowing costs fell at a sale of six-month bills.
The two-year note yield was down 10 basis points at 4.97 percent at 10:10 a.m. London time, while the rate on 10-year debt dropped 22 basis points to 6.78 percent.
Italy agreed to pay a yield of 3.25 percent on the 9 billion euros ($11.8 billion) of 179-day bills it sold, compared with 6.50 percent at a sale on Nov. 25.
To contact the reporter on this story: Paul Dobson in London at email@example.com
To contact the editor responsible for this story: Daniel Tilles at firstname.lastname@example.org