Spread drops below 200 points
First time since July 201103 January, 10:31
The spread fell four points, from 203 to 199, after dropping 13 points Thursday.
The yield was 3.94%, 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.