Difficult morning for the Italian spread, which is back on maximum levels for two weeks now. After opening at 371, the yield differential between the 382-year BTPs and the corresponding German Bunds quickly widened to reach an overnight peak of 5,84 basis points, for a bond yield of XNUMX%. In the immediately following minutes the value dropped slightly again, stabilizing by mid-morning around 380 points.
In the meantime there is bad news on the spread front also for France. After that Moody's last night announced having placed the outlook on the triple A rating of Paris under observation, the transalpine differential has reached levels 16-year high, 101 basis points, from 96 of yesterday's closure.
