The Italian spread is once again walking on the edge of the abyss, once again approaching the x zone of 400 basis points. After opening at 378, the yield differential between ten-year BTPs and the corresponding German Bunds gradually widened to break through the 390 wall again.
The maximum reached in the morning was 392 bp. The tensions on our government bonds reflect the concerns expressed during the EU Council that closed yesterday in Brussels, which led the president Herman Van Rompuy to issue an ultimatum to Rome: the parliament approves the new measures for growth by Wednesday , the date on which a new community summit is expected. To obey Europe, Silvio Berlusconi has convened an extraordinary CDM for this afternoon.
