One night is not enough to make Greece sick. There political crisis in Athens continues to weigh on the government bond market, especially in Spain and Italy. This morning the BTP-Bund spread it returned to climb again in the opening, arriving at exceed the threshold of 450 basis points. The differential between Italian and German bonds, which closed yesterday evening at 439, today reached a maximum of 456 points. This is the highest level since mid-January. The new value is a interest rate on our 5,95-year bonds equal to XNUMX%, now very close to the dangerous psychological threshold of 6%.
In the same minutes the Madrid spread he made an even larger leap, carrying himself over the 500 basis point wall, Up to a maximum of 507. In this case it is even the historical record. Yields on 10-year Spanish bonds have soared to as high as 6,5%.
The spread of differentials also widens because investors buy German Bunds en masseconsidered safe haven assets. Il cup of interest on the bonds of the leading European economy thus falls in the morning to1,434%, against 1,469% yesterday evening. It's about the new all-time low.
The Greek situation is once again causing tension on the bond market. The last meeting between the president of the republic Karolos Papoulias and the leaders of the three major parties (New Democracy, Syriza and Pasok) ended in yet another nothing done: no government coalition, no technical executive. “Unfortunately” – announced the socialist Evangelos Venizelos, number one of Pasok – we will have to go back to the polls. The leader of the Democratic Left, Fotis Kouvelis, confirmed that there will be no more negotiations. The Greeks will be called to vote again between 10 and 17 June.
The fear is that the government created by the forthcoming elections may reject the agreements signed by Greece with the EU and the IMF. The country would thus avoid putting into practice the austerity measures imposed by Europe, but at the same time it would renounce international aid for 130 billion dollars. A chain of events that would likely push Athens out of the eurozone and therefore, inevitably, to default.
The positive outcome of the was not enough to hearten the market first meeting between French President François Hollande and German Chancellor Angela Merkel, who have expressed their willingness to keep Greece within the eurozone. International speculation is already betting on who will be the next victims of luxury. Spain and Italy are in the sights.
