The now (almost) certain Hollande's victory in the French presidential elections triggered a sell-off in the secondary government bond market. The spread between the Italian XNUMX-year BTPs and the corresponding German Bunds has again exceeded the threshold of 400 basis points and stands, a few minutes after 9.00, to 406 bps, with a yield for BTPs of 5,757%. In the morning it reached 409 bps. Two-year bonds are also on the rise: the interest rate is 3,38%.
Even in the French market the situation is tense: XNUMX-year Oats are drifting dangerously away from the values of the German Bund. This morning the Paris spread has already bought 10 points more from the open and stands at 146 pb: it had fallen below this threshold on 25 November last, after the maximum tension due to the crisis. 3,139-year bonds have a yield of XNUMX%.
Investors also share pessimism towards the neighboring Iberian Peninsula. The differential between the Spanish Bonos and the Bunds is 435 points with the yield on 6-year bonds over XNUMX%. Situation even more serious in Portugal where all the improvements made in recent months have been cancelled. In fact, the spread is around a 10,16% difference with German securities, when on Friday it managed to close below the 10% threshold, which it had not reached since the beginning of February.
The situation on the squares of the various countries does not improve. Milan opened in the red and is now losing 2,08%. Paris (-1,36%) and Madrid (-2,19%) are also bad. Lisbon tied. Frankfurt loses: Dax30 -1,47%.
