The tension drops on the Italian spread, which in mid-morning fell to a minimum of 362 basis points, after closing yesterday's session at 378. The new level of the yield differential between 10-year BTPs and their equivalent German Bunds signals a reduction of the interest rate on our ten-year government bonds, which in the same minutes returns to 5,3%. Yields on two-year bonds, on the other hand, fall to 3%.
It also shrinks the differential of Spain, which for the first time since the beginning of the month once again falls below the psychological threshold of 400 basis points, reaching a low for the day at 395. In less than three hours from the opening, interest rates on 10-year Spanish bonds are reduced from 5,9 to 5,7%. The markets therefore valued positively the Bonos auction closed yesterday by the Treasury of the Iberian country with mixed results.
Less good news instead comes from the stock markets, where all European stock exchanges travel in the red. Milan and Madrid drop one and two points respectively, followed by Paris (-0,4%) and Frankfurt (-0,2%). Only London is slightly above parity (+0,06%).
