The ECB effect continues to bear fruit. While “volatility” is still the buzzword on European stock exchanges, data on the bond market seems to have stabilised. The purchase of Italian and Spanish government bonds by the Frankfurt institute has really calmed things down. The spread between the BTP and the Bund remains below 300 basis points (around 15:30 it is at 273), while the yield on the ten-year bond is now just above 5%, the lowest since the beginning of July, when the storm speculation has begun to affect our country.
It seems that several investors have decided in the last few hours to abandon the stock market to embrace the bond market, much safer since the Eurotower took the field. It's the calm after the storm, but no one knows how much longer it will last. As for the other countries in the eye of the storm, at the moment the Spanish spread is at 270 bps, while the French one has dropped to 77, after having touched 90 yesterday. The yield on bonos fell below 5% this morning , the lowest since last February.
