UPDATE 2-Italian yields higher as budget concerns remain in focus
* Di Maio says on track for high-spending budget
* Lira and rouble weakness fuel risk aversion
By Virginia Furness and Dhara Ranasinghe
Aug 9 (Reuters) - Italian Deputy Prime Minister Luigi Di Maio renewed investor concern on Thursday that the country is heading for a costly and unsustainable spending spree, pushing Italian bond yields higher 3 to 6 basis points across the board.
Di Maio, leader of the anti-establishment 5-Star Movement, told reporters that next year's budget would included pension reform, tax cuts and a citizen's income. Such measures would cost billions of euros and put pressure on public accounts .
Italy's two-, five- and 10-year bonds rose 3 to 6 bps with the benchmark 10-year bond yield hitting 2.92 percent, its highest level this week so far.
"I think Di Maio's comments are the trigger, because it now looks like the government wants to implement the spending programme fully and they want to do it soon," said BBVA strategist Jaime Costero Denche.
The previous day, comments by Italian Prime Minister Giuseppe Conte had given investors hope the programme would be phased in over a number of years,
The contrasting comments by government officials have led to swings in Italian yields as investors try to assess whether the country's 2019 budget will clash with European Union rules on fiscal discipline.
"Basically we will continue to see noise until the implementation of the budget in September," said Costero Denche.
Long-dated yields on safe-haven German bonds touched a two-week low as European stocks struggled with trade war worries, Russia's rouble tumbled after the United States imposed fresh sanctions on the country and Turkey's lira dropped to a new low.
Germany's benchmark Bund yield dipped to a two-week low at 0.377 percent.
Threats to global growth are growing as the risk of protectionism and higher U.S. tariffs sap confidence, the European Central Bank said in a regular economic bulletin on Thursday.
(Reporting by Virginia Furness and Dhara Ranasinghe; Additional reporting by Abhinav Ramnarayan; Editing by Larry King)(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)