While the stock market is recovering after yesterday's collapse (at 12 the Ftse Mib was gaining 25%) the tension also decreases on Italian government bonds. According to data provided by Bloomberg, at mid-day the yield differential between 2,17-year Treasury bills and their equivalent German Bunds stands at 309 basis points. A significant reduction, considering that just 24 hours ago the spread had reached 337 bps, not far from the historical record reached last week (347 bps).
The easing also involves the yields of securities already traded on the market: on 10-year BTPs, wage rates, which yesterday had once again exceeded 6% (the maximum since the launch of the euro), today fall back to 5,779%. In this type of issue, interest is inversely proportional to the price.
