For the first time in the last two weeks the BTP-Bund spread makes above the ceiling of 360 basis points, dangerously approaching 370. After closing last night at 351, the yield differential between ten-year Italian and German government bonds soared this morning to reach a maximum of 366 points. The new width of the gap corresponds to interest rates on our ten-year bonds equal to 5,184%.
Tension on the bond market is rising again just a few hours after an important auction Treasure, which this morning will put 9 billion Bots on the market in six months. Yesterday closed on a positive note placement of the Ctz, but already tomorrow Italy will be called to a new test, this time on the long term, with the auction of 5 and 10 year BTPs.
Meanwhile, even the share lists have opened in trouble, with Piazza Affari leaving more than one point in the field shortly after the start of trading.
It was the Chairman of the Philadelphia Federal Reserve, Charles Plosser, according to which it probably will be the new quantitative easing plan implemented by the Fed is ineffective during its last meeting. For Plosser, the Fed's new quantitative easing will fail to support growth, but will damage the central bank's credibility.
In Europe eyes focused on Spain (Moody's will communicate the outcome of its credit review within the week) and on Greek debt crisis, which in days will return under the lens of the Troika (ECB, EU and IMF). Joerg Asmussen, a member of the ECB's Executive Board, said in an interview with Die Welt that the Eurotower would not take part in apossible restructuring of the Greek debt.
