Italy still does not inspire confidence in the markets. This morning, after the Berlusconi's speech in Parliament, the spread between 10-year BTPs and German Bunds soared, growing by more than 10 bps since yesterday, reaching 368. As our graph shows, the comparison with Spain has also worsened in recent days. The spread between Spanish Bonos and Bunds stands at 301.
The news coming fromBtp auction Treasury, are no better. The yield on 10-year BTPs is up: +5,79% is the highest level reached since last August 5 (when it came close to 6,4%).
