Italian markets calm ahead of election.

Italy is due to hold an election on Sunday and Monday, with the center-left Democratic Party leading in the polls with a projected 34-35% share of the vote, although that's below the 42.5% needed to form a government. Silvio Berlusconi's Freedom Party has recovered to second with 30%, roiling bond and stock markets over the past few weeks. However, today all seems calm, with the FTSE MIB +1.1% at midday in Europe and 10-year bond yields -4 bps to 4.46%.