The Milan stock exchange's FTSE Mib index gained 0.6%, taking it up to 19,962, in early trading on Tuesday after it shed over 2% on Monday amid tension about the government's budget plans.
The spread between Italy's 10-year BTP bond and the German Bund opened on 299 points, after peaking at 310 points on Monday.
The yield on the BTP was 3.54%.
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