Today is a day to remember for lo Italian spread, which is back for the first time in six months below the 300 basis point threshold. By mid-morning, the yield differential between 10-year BTPs and their corresponding Spanish Bunds stood at 293, after having opened at 314. The new value corresponds to a interest rate on our 4,75-year bonds equal to XNUMX%, never so low even since last June.
Business Square in the meantime earn more than one point, in line with the performance of the other main European Stock Exchanges: London is up by 1,08%, Paris by 1,72% and Frankfurt by 1,69%.
The drop in tension on the equity and bond markets is therefore generalised. The spreads of Spain also cooled down in the morning (which in any case remains well above the Italian one, at 321) and of the France (109 bps). To bring the light back to the markets are mainly the rumors coming from Greece.
This evening at 21 the Psi will close (“Private sector involvement“), i.e. the plan which envisages the involvement of private creditors in rescuing the country. For the operation to be really successful, at least 90% of the creditors will have to voluntarily join, accepting the exchange (“swap”) of their Greek government bonds with other bonds with longer maturities and lower yields. Investors will thus lose 75% of the invested capital.
According to the latest rumors arriving from Athens – and reported by Bloomberg -, 60% of private creditors would have already joined the programme (124 billion euro out of a total of 207). To avert the danger of an uncontrolled default, this percentage must rise by at least another 15 points by tonight. These exchanges are generally concentrated in the last few hours available. For now, the markets are optimistic.
