Refuse the Btp-Bund spread. The differential between the interest rates on ten-year German and Italian government bonds had reached the alarming level of 545 basis points in the early morning, according to Bloomberg, touching the all-time high of until October (550 basis points), only to then subside in mid day, arriving at 12 to drop below 520 basis points. To be exact, at 12.03 the figure marked 518. The yield on Italian ten-year bonds had also reached 6,7%, only to fall back during the morning.
The spread between Spanish and German bonds is instead at 631, while the return on bonos is 7,56%. The yield on Spanish 10-year government bonds had set a new record since the creation of Euroland, reaching 7,659% at the opening of the markets.
