The situation of Cyprus terrorizes the markets and makes it fly spread. At the opening today, the yield differential between Italian ten-year BTPs and the equivalent German Bunds jumped up to a maximum of 337 points, after closing last week at 315. In the immediately following minutes the value dropped slightly, until it settled just above 330 points. The new spread of the spread corresponds to a yield on our ten-year bond of 4,72%.
The stock markets are also in full tempest, with Business Square which, half an hour after the start of trading, leaves 2,3% in the field. Milan is the worst of the main European stock exchanges, which however all travel in negative territory: Frankfurt -1,28%, Paris -1,73% and London -1,03%.
To determine the wave of sales was the agreement reached in Brussels in the night between Friday and Saturday for aid to Cyprus. Current accounts have been touched for the first time. Throughout the weekend, in Nicosia, long queues of citizens were created in front of the branches of banks equipped with ATMs.
The very harsh conditions imposed on Cyprus have met with approval from Germany ("The interests of Europe and the German taxpayers have been respected", said Angela Merkel's spokesman), but they have also raised fears around the world that the crisis of the Old Continent has taken a further step towards collapse.
