The spread between Italian and
German 10-year bond yields, a gauge of Italy's borrowing costs
and of market confidence in the Italian economy, closed one
point up on 170 points Tuesday, with the yield up 0.04% to
2.10%.
The spread is now at a five-week high, a day after ECB chief
Mario Draghi said the central bank would continue its monetary
policy, and two days after German Chancellor Angela Merkel was
returned with a smaller vote amid the first postwar entry into
the Bundestag of a far-right party, AdF.
The lower the spread is, the better it is for the Italian
economy and debt-servicing costs.
The spread rose above 200 points earlier this year on EU
populist fears.
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