More good news for Italian government bonds. This morning the Treasury placed 9 billion semi-annual BOTs – the maximum amount offered – with a yield of 1,503%, down further from the previous August auction, when the rate was 1,585%. The new level is the lowest recorded since last March. Good the question, equal to approximately 12,5 billion.
Despite the good results of the placement, within minutes of the auction Piazza Affari continues to drop more than 2%, while the Btp-Bund spread travels above 365 basis points, the highest for two weeks.
Yesterday also closed in a positive way placement of the Ctz, but already tomorrow Italy will be called to a new test, this time on the long term, with the auction of 5 and 10 year BTPs.
It was the Chairman of the Philadelphia Federal Reserve, Charles Plosser, according to which it probably will be the new quantitative easing plan implemented by the Fed is ineffective during its last meeting. For Plosser, the Fed's new quantitative easing will fail to support growth, but will damage the central bank's credibility.
All eyes on Europe about Spain (Moody's will communicate the outcome of its credit review within the week) and on Greek debt crisis, which in days will return under the lens of the Troika (ECB, EU and IMF). Joerg Asmussen, a member of the ECB's Executive Board, said in an interview with Die Welt that the Eurotower would not take part in apossible restructuring of the Greek debt.
