Milan bourse soars, spread down

Investors encouraged by govt readiness to intervene for banks

(ANSA) - Milan, October 29 - The Milan stock exchange's FTSE Mib index gained 2.5% on Monday, taking it up to 19,138 points, while the pressure on Italy's bonds eased.
    Investors seem to be encouraged by Economy Minister Giovanni Tria saying the government was studying various options to support banks in difficulty, if necessary.
    The markets were also relieved that Standard & Poor's announced it was not lowering its rating for Italy.
    The spread between Italy's 10-year BTP bond and the German bund dropped to 291 basis points after closing on 309 points on Friday. The yield on the BTP was 3.29%.