There is no sign of easing the tension on the government bond market. The Italian spread it is still trading well over the 400 basis point threshold and mid-morning hit a peak of 413. It is about highest share since the end of January. The new level of the spread between Btp and Bund corresponds to interest rates on our 5,6-year bonds equal to XNUMX%.
What widens the gap between Italian and German government bonds is mainly the uncertainty of the markets in relation to the difficult political situation in Greece, which risks jeopardizing the international aid plan intended to save Athens. Thus the alarm rises again for the possible exit of the Greek country from the Eurozone and investors fall back en masse on the purchase of the Bund, now a real safe haven, causing yields on German bonds to slip to historic lows.
It's no better in this climate Spain. Madrid spread travels over 450 points, the highest since last November. Also the differential of the France widens, reaching 135.
