Greece and Germany weigh on the government bond market. In the morning the Italian spread once again exceeded the threshold of 420 basis points, the highest since last January. The new level corresponds to an interest rate on our 5,7-year bonds of XNUMX%. In the same minutes thereThe spread of Spain shot up from 449 to 476, while that of France reached 140 points.
Meanwhile, the Stock Exchange widens its losses. In Piazza Affari, the Ftse Mib loses around 3%, while Paris loses 2 and a half and Frankfurt 2,23%.
The yield differential between the 10-year BTP and the Bund – which closed last Friday at 399 – is mainly affected by the Greek political crisis. More than a week after the elections, the Greek parties have still not managed to reach an agreement to create a government capable of keeping the austerity promises made to Europe. The country could return to the polls next month and the markets fear that the executive resulting from new consultations would not respect the commitments made with the EU and the IMF. This would mean giving up the agreed international aid of 130 billion euros, dragging Greece out of the eurozone and probably into bankruptcy.
Meanwhile, the tension rises on the European spreads also due to the last regional elections in Germany, which saw Chancellor Angela Merkel's party (the CDU) clearly beaten in North Rhine Westphalia, the largest land in the country. A confirmation that even the Germans no longer support the line of absolute rigor supported by their head of government.
