⁍ Italian government bond yields were lower on Friday.

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⁍ Investors seem confident that a downgrade on Italy’s rating is not imminent.

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⁍ Euro zone economic activity slipped back into decline this month.

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– The Purchasing Managers’ Index for the euro zone fell to 49.4 in October, the lowest level in four months and a sign that the economies of the 17 countries that use the euro are in dire straits, reports Reuters. “It’s not surprising given the local restrictions imposed in major cities in France and elsewhere, and the majority of investors are expecting more action from the ECB by the year end,” said a Commerzbank rates strategist. Italy’s 10-year bond yields fell to 0.76%, while Spain’s 10-year fell 2.6 basis points to 0.20% and Portugal’s fell 2.5 basis points to 0.18%.