Italy continues to take a breather on the bond market. In the wake of the voltage drop that arrived yesterday following the latest political developments, this morning the spread it returned to drop conspicuously at the opening, almost immediately falling below the threshold of 500 basis points.
Less than an hour after the start of trading, the yield differential between the ten-year BTPs and the corresponding German Bunds reached a minimum of 478, to then rise slightly and stabilize around 480. A value that is still very high in terms absolute, but a clear improvement compared to the highs reached yesterday (570 bp) and Wednesday (575 bp).
The cooling of the spread naturally affects the yield on our 10-year bonds. After reaching their highest levels since the introduction of the euro in recent days, interest rates have returned to falling below the notorious 7% mark in the last few hours, considered by most analysts to be the point of no return. By mid-morning the figure seems to have stabilized at around 6,6%.
