Bond spread with Germany closes at 239 basis points
Milan, other European markets muted Monday over US fears14 October, 19:56
Milan's key FTSE Mib rose by only 0.19% to close at 18,917.
Investors remained concerned as a breakdown was reported Sunday in talks in the US aimed at reaching a deal on raising the debt ceiling in the world's biggest economy before a Thursday deadline.
Despite the uncertainty, the Italian bond market strengthened, narrowing the spread between Italy's benchmark 10-year bond and its ultra-safe German counterpart.
The spread closed at 239 basis points, down slightly from 241 basis points on Friday, with the yield on Italy's 10-year paper closing at 4.25%.
The spread between lending rates in the two countries is an important indication of investor faith in the Italian economy, and the government's ability to work cooperatively to cope with a lingering recession.
Other European markets showed little activity as Spain's IBEX 35 climbed by 0.28% to close at 9,696 points and Frankfurt's DAX was unchanged, closing at 8,723.81 points.
In Paris, the CAC 40 was also unchanged on the day, ending trading at 4,222.96 points, while in London, the FTSE index of leading British shares rose by 0.30% on the day, closing at 6,507.65.