An hour after the start of the session, the Italian spread fell by more than 10 points, returning to the minimum levels reached in mid-September. Opening at 380, the differential between ten-year BTPs and the equivalent German Bunds then collapsed to a minimum of 365 basis points.
The yield on our bonds thus dropped from 5,65% recorded yesterday to 5,58%. In the same minutes, the spread of Spain also decreased considerably, going from 331 at the opening to a much more reassuring 317.
Rumors about a possible extension of the EU State-saving Fund (EFSF) and about a possible cut in interest rates by the ECB therefore weigh on the markets. Optimism that has not been dampened by the news that last week the Eurotower has reduced purchases of government bonds to just 3,95 billion.
