Following the announcement of the possible tripartite recipe to strengthen the capitals of the banks, announced yesterday by the president of the ECB, Mario Draghi, the gap between the ten-year BTPs and the corresponding German Bunds is narrowing. Since the beginning of the transactions, the differential has reduced by over 20 points before recovering and stabilizing at 446 pb, with the yield on 10-year government bonds at €6,406. The performance of 2-year BTPs was also good, at 5,233 euros.
After the excellent results of yesterday's auction, the Spanish spread is also in free fall. The difference between the Bono and the Bund reached 322 pb and seems to be heading towards the low of the last months, recorded ten days ago, at 291 bp. The Treasury of Madrid yesterday placed over 6 billion euros of medium-long term government bonds, with a sharp drop in yields on Bonos maturing in 2016 and demand doubling supply.
It also decreases the spread between the French Oats and German Bunds which is attested at 109 basis points.
