New record for the Btp-Bund spread. The yield differential between Italian and German bonds rose this morning to an all-time high of 225 basis points. This is the new high since the introduction of the euro. The yield of the ten-year BTP has reached 5,18%.
The context remains difficult, as in recent days, with the peripheral market heavily under pressure. The auctions of three and five-year Spanish government bonds weighed even more heavily on the climate. Once the Iberian paperwork was archived, the Btp-bund spread narrowed slightly, to 220 basis points. Already yesterday the interest rate had exceeded the 5% threshold for the first time since 2008, suffering the pressure of the contagion risk of the sovereign debt crisis, amplified by the downgrade of Portugal decided by Moody's two days ago.
Meanwhile, the debt risk of Portugal and Ireland hit new highs: credit default swaps on Lisbon jumped by 16 basis points, up to a record 951 points, while those on Dublin increased by 5 points, reaching 848 points. On the other hand, CDS on Athens remained stable at 2.150 basis points.
