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 five
points up on 137 points Thursday, with the yield closing at
1.925%.
The spread is rising on the prospect of a government between
the anti-migrant Euroskeptic League and the anti-establishment
5-Star Movement (M5S), which would be western Europe's first
populist government.
The lower the spread is, the better it is for the Italian
economy and debt-servicing costs.
The spread rose above 200 points last year on EU populist
fears.
The Milan bourse closed 0.96% down amid market jitters on the
government prospects Thursday.
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