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Spread closes below 200 points

First time since July 2011

03 January, 18:30
Spread closes below 200 points (ANSA) - Rome, January 3 - The spread between Italian 10-year bonds and their AAA-rated German equivalents, the premium investors pay to hold Italian paper, was 197 points at the close of trading Friday, below the psychologically important threshold of 200 points for the first time since July 6, 2011. The spread fell six points after dropping 13 points Thursday. The yield was 3.91%, down from 3.96% Thursday, when it fell below 4% the first time since May. A narrower spread indicates greater investor confidence in the Italian economy and Rome's ability to pay down its huge debt. Analysts said investors were responding to solid recent bond sales and the prospect of political stability and structural reforms as Italy's left-right government embarks on a revamped agenda in the New Year.

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