Spread Btp-Bund, +10 points due to Portugal downgrade

The gap between the German BTPs and Bunds is widening again. This morning, the spread on ten-year bonds rose by 10 basis points, reaching 210, close to the record levels of recent days. The main cause of the new increase is the tension brought on the markets by Moody's decision, which downgraded Portugal's rating to junk level. The yield differentials of the Iberian countries also increased. The Spanish bond spread over Germany widened to 262, up 13 basis points. A real nightmare instead for the Portuguese: the rise was as much as 40 points, up to the sidereal share of 965 basis points.