LONDON, Nov 21 (Reuters) - Italy's government bond yields rose on Wednesday after Italy's League Party denied reports that its leader Matteo Salvini is willing to compromise on the budget.
Bond yields across the curve came off the day's lows after a government source denied Salvini is willing to water down spending plans in the 2019 budget.
Italy's 10-year bond yield rose to 3.56 percent from 3.53 percent just before the comments hit the market. It was last down 5.5 basis points on the day.
Italian banks came off earlier highs but remained firmly in positive territory, up 1.7 percent, while the broader Italian stock index was up 0.9 percent.
Both Italian bond and equity markets had rallied at the open on a La Stampa report that Salvini may be open to reviewing the budget. (Reporting by Virginia Furness and Danilo Masoni; Editing by Dhara Ranasinghe)