The spread between Italy's
10-year BTP bond and the German Bund opened on 289 basis points
on Monday, a big fall from Friday's closing value of 301.
The yield on the BTP was 3.35%.
The Milan stock exchange's FTSE Mib index, meanwhile, gained
1.15% in early trading, lifting it to 19.294 points.
Investors do not appear spooked by Moody's announcement on
Friday that it has downgraded Italy's credit rating to Baa3,
with a stable outlook, citing concerns about the government's
budget plans, which feature allowing the deficit up to 2.4% to
rise to 2.4% of GDP next year.
Analysts said investors were relieved that the rating was not
taken down to junk status and the outlook was put at stable.
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