Even the spread has taken a vacation. While awaiting the new measures of the ECB, supported by the German chancellor Angela Merkel, with austerity measures now approved in all the countries most in crisis, even the feared spread is starting to calm down. And today the eyes are on Portugal. Indeed the 10-year bond yield has fallen below the XNUMX% threshold, to 9,86% which, apart from a happy day at the end of July, hadn't reached for more than a year. But most of all the German government's annual bond recorded a drop of 21 basis points to 4,38%: the lowest since March 2011. Today it spread with the Bund is around 832 basis points, among the lowest levels of the last year.
Also in Italy and Spain the tension on the secondary market decreases. The Btp-Bund spread returned to early July levels at 425 bps with the yield on the 5,78-year bond at XNUMX%. Interest on 2-year BTPs is down sharply and could even fall below the 3% threshold. It now stands at 3,09% versus yesterday's close at 3,31%. Sister Spain also begins to breathe a sigh of relief. With the the spread at 490 bps remained below the dreaded 500 points threshold for the second day. Even for 2-year Bonos the drop was significant to 3,7%, the lowest since last May.
