Spread steady at 224 points
Lowest since July 201111 December, 18:26
A narrower spread indicates greater investor confidence in the Italian economy and Rome's ability to pay down its huge debt.
Analysts said the markets were responding to firmer prospects of political stability after confidence votes in Italy's new right-left government.
The Milan bourse closed 1.44% down amid mostly slight losses across Europe.
London was 0.24% down, Frankfurt 0.40%, Paris 0.10%, Madrid 0.84% and Athens 0.31% down.