Italy’s head of state is set to sign off on a new government on Wednesday after two rival political parties agreed on an unlikely coalition that is expected to improve ties with the European Union and adopt a softer stance on immigration.

Axar.az reports citing Reuters that Prime Minister Giuseppe Conte, who led the outgoing administration, arrived at the presidential palace at 2.40 p.m. (1240 GMT) to unveil his new cabinet lineup and request a new mandate from President Sergio Mattarella.

The alliance between the anti-establishment 5-Star Movement and the center-left Democratic Party (PD), formerly sworn enemies, followed a month of political upheaval triggered by the sudden collapse of the previous ruling alliance.

Italy’s 10-year bond yield hit a fresh record low of 0.80% and the closely-watched 10-year bond yield gap over safer German Bund yields tightened to around 145 bps DE10IT10=RR — its narrowest in more than a year.