Sensational surge in the Italian spread after the five-year Btp auction. On the day when everyone expected a positive response from the markets after the assignment of the new government mandate to Mario Monti, the latest Treasury placement spoiled the party, with yields reaching 6,29 % (they were at 5,32% in the October 13 auction).
In a few minutes, the yield differential between the ten-year BTPs and the corresponding German Bunds shot up by 20 points, returning to around 480 basis points. Five-year interest rates hit their highest since 1997, yet were lower than what the bonds were trading for on the market just last Friday.
However, the rise of almost 100 basis points since the last auction has discouraged investors. Indeed, in the same minutes, 6,3-year yields also rose again, rising from 6,56 to XNUMX%. Piazza Affari instead veered downwards, losing a point.
