The Napolitano effect is good for the BTP-Bund spread. After the historic re-election of the Head of State, this morning the yield differential between Italian and German 10-year government bonds fell to a minimum of 279 basis points. The value corresponds to interest rates on our ten-year bonds equal to 4,07%, the lowest since January.
In the immediately following minutes, however, the gap widened again, remaining in any case below the 290 points threshold, at 288. Last Friday the spread had closed at 298 basis points.
