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Italian bonds rally after S&P affirms rating; 10-year yield down 5 bps

LONDON, April 29 (Reuters) - Italian government bonds rallied on Monday after S&P Global affirmed the country's sovereign credit rating at BBB, two notches above junk territory.

Italy's 10-year bond yield dropped five basis points to 2.53 percent, while the closely-watched spread over Germany was at 254 bps, its tightest in over a week and well off last week's two-month high of 269 bps. (Reporting by Abhinav Ramnarayan, editing by Karin Strohecker)