Milan bourse stable after Moody's downgrades Italy
Spread, yield up slightly14 February, 10:50
(ANSA) - Rome, February 14 - Italian 10-year yields rose slightly but the Milan bourse was stable Tuesday after American ratings agency Moody's downgraded six nations including Italy. The spread between Italian bonds and the German bund, a key indicator of market confidence in Italy's ability to service its big national debt, went up to 375 basis points while the yield rose slightly to 5.64% in early trading. Moody's lowered Italy's rating from A2 to A3 status late Monday in downgrades across Europe, including Spain and Portugal.
France, Britain and Austria, which bear the agency's highest triple-A rating, were put on notice, sending jitters in early eurozone trading. Italy's was the only European market to open up Tuesday, gaining 0.5%.
The country has been on a positive trend on the sovreign-debt market despite downgrades from Fitch and Standard & Poor's, the two other major ratings agencies, last month.