The spread between Italian and
German 10-year bind yields dropped to a nine-month low of 235
points Thursday, compared to 240 at Wednesday's closeas
investors saw a less confrontational government stance towards
the European Commission in talks to avert an infringement
procedure for breaking the debt rule.
This is its lowest level since last September.
The yield on the BTP hit a recent low of 2.03%.
The spread closed two points down on 240 basis points
Wednesday with the yield on the BTP falling to 2.10%.
The spread closed 11 points down on 243 basis points Tuesday
after European Central Bank chief Mario Draghi pledged further
stimulus if the eurozone economy fails to pick up.
The yield on the BTP fell to 2.11%.
Earlier in the day the spread fell below 240 for the first
time since March, to 236.8, with the yield at 2.05%.
The spread closed six points down on 254 basis points Monday
with the yield on the BTP falling to 2.29%.
The spread rose as high as 330 at the end of November amid a
budget standoff with the EU, which saw Italy eventually climb
down and lower its planned deficit from 2.4% to 2.04% this year.
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