For a moment we thought we had left behind the terrible threshold of 400 basis points of difference with German securities. In the morning, the Btp-Bund spread reached 397 bps, more than 25 points less than the maximum recorded at the start (423). Shortly after, however, the differential began to rise again and now stands at 405 points. The yield on 10-year Italian bonds is 5,45% while that on two-year bonds is 3,48%, the lowest value in the last 10 days.
The situation on the bond market is also improving in Spain. The Bonos-Bund spread stands at 464 points: you have to go back to May 11 to find a lower value.
The spread of France follows the downward trend which, since the beginning of the week, has lost more than 30 cumulative points in the last 3 days and is now at 104 bp. It therefore seems that investors approve of the determination with which the new French president François Hollande is promoting a new pro-growth and pro-Eurobond line in Europe.
