Spread widens, euro drops on election (3)

Spread jumps 12 pts, euro drops below $1.23

(ANSA) - Rome, March 5 - The bond spread widened and the Milan bourse and euro dropped after Italy's inconclusive election results Monday.
    The spread between Italian and German 10-year bonds, a gauge of market confidence in the Italian economy and of Italy's borrowing costs, jumped 12 points to 143 after Italy's inconclusive election results Monday.
    The yield rose above 2%, to 2.03% as no clear winner emerged and a hung parliament beckoned, according to projections.
    The euro fell below $1.23 after the results.
    The European single currency fell to a low of $1.2269 before settling at $1.2280.
    The Milan bourse opened 2.03% down on 21,446 points but later rallied to show a loss of just 0.9%, at 21,704 points.
    European bourses showed mostly losses upon opening Monday. Frankfurt opened 0.69% down and Paris 0.39% down but London opened 0.1% up.