The Italian-Hispanic derby leaves the markets in suspense. In the morning, Italy scores a new overtaking on Spain: the differential between the BTP and the Bund has dropped to 313 basis points while the Spain-Germany one is at 315. Around 13.00 the two spreads are even at 312 basis points. The yield on ten-year BTPs is 4,93%, we have not seen such a low interest rate since last July 4th. Last Friday, Italy's differential against Spain had become positive for the first time since august.
The spread between French Oats and German Bunds remains stable from opening a 99 basis points.
