The spread between Italy's
10-year BTP bond and the German Bund dropped below the
300-basis-points mark in early trading on Tuesday after the
government presented its draft budget.
The spread, which closed at 304 points on Monday, fell to 296
points.
The yield on the BTP fell from 3.55% to 3.48%.
The budget will see Italy's deficit-to-GDP ratio rise to 2.4%
next year, which has prompted the European Commission to express
concern it may breach the Stability and Growth Pact.
The League-5-Star Movement executive have said critics of the
budget plan are not taking into account the positive effects it
will have on growth, which they say will bring down the
debt-to-GDP ratio.
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