The spread soars, the ten-year BTP yield is close to 3% and the ECB takes the field again to try to calm spirits.
In an interview published on the website of the European Central Bank, Iseabel Schanebl, a member of the board, states that “We are living in difficult times: the stock exchanges are extremely volatile, the prices on the stock markets have fallen drastically. And now the events are gradually being reflected in the data that we get from the real economy. Production in China declined significantly in January and February. This will also impact the banking system. But at the moment there is no acute banking crisis. However, we are closely monitoring the current situation so that we can react quickly to new developments if necessary." A "unanimous" decision of the entire board.
After the purchases made in recent days, new countermoves could therefore arrive. “the ECB is ready to do everything possible to address the market turmoil that they will interrupt the transmission of monetary policy, otherwise monetary policy will not work. The entire board of directors agreed on this”.
In the meantime, the btp sales rain continues. The spread between Italian and German ten-year bonds on the morning of 18 March it reached 330 basis points, a level not seen since March 2013. At 12.15 the differential was 311 points, a sharp rise compared to 279 at yesterday's close. Volatility affects the yield on ten-year btp, which after exceeding 3%, flies to 2,936%. “There is no particular news or movement on Italian stocks alone”, explains a trader to Radiocor: “All European stocks are negative, as well as ours also Portugal, Great Britain, France and Denmark”, he says.
The yield of deUS Treasury Bonds at 10 years which at 12.00 is equal to 1,13% (+5,34%).
They travel on the stock in deep red all the main European price lists. Sales above 5% in Frankfurt, London and Paris. -4,88%, while Piazza Affari tries to defend itself by shielding itself with the ban on short selling. In Milan the red is slightly more contained and the Ftse Mib drops by 2,83%.
