Spread Btp/Bund, a little breathing space: the differential is back below 380

14 September 2011, 13:25 | di FIRSTonline editorial team | 0

This morning, after an opening at 391 points, the spread had flared up to exceed the 400 threshold again – but in the early hours of the afternoon, with the vote of confidence on the Maneuver in the Chamber, tensions subsided again.

Spread Btp/Bund, a little breathing space: the differential is back below 380

Breath of fresh air for Italian government bonds. The spread between ten-year BTPs and the equivalent German Bunds decreased in the early afternoon to a minimum of 375 basis points. After an opening at 391, in the morning the differential had widened again until it broke through the 400 bp wall again, even if by just one point. The subsequent drop in tension seems to be linked to what happened in Parliament, where the government gave the go-ahead for trust on the Maneuver with 316 votes in favour, 302 against.

FIRSTonline editorial team

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