The breath of fresh air continues for Italian government bonds. After the collapse of spreads and yields recorded yesterday in reaction to the launch of the Monti manoeuvre, this morning the temperature on the Italian debt market drops further.
Il difference between Btp and Bund at ten years, from 371 points at the opening, it rose in a few minutes to 385, signaling the tension of investors due to the threats and downgrades arrived from the rating agency Standard & Poor's. Immediately afterwards, however, the gap closed again, recording a new drop of almost 30 points at the end of the morning.
Around 13 pm, the spread thus settled at 356 basis points. Good news also coming from the front of the returns on ten-year bonds, which stabilized below 6%, at 5,8%.
Less encouraging trend for the French differential, which evidently still discounts the pressure from S&P as well as the judgments of various kinds on theyesterday's meeting at the Elysée between Nicolas Sarkozy and Angela Merkel. However, the rise is contained (from 99 to 105 bp) and the value remains well away from the records set in recent weeks.
Virtually unchanged though the spread of Spain, which after a swinging morning remains at 288 points.
