Spread closes two points down
Yield down to 3.82%22 January, 19:08
The yield was 3.82%, down from 3.85% Tuesday.
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 good recent bond sales and the prospect of structural reforms as Italy's left-right government embarks on a revamped agenda after a deal on a new election law to ensure stability.
European markets posted mostly minimal changes after a recent string of gains on optimism that the US economy is strong enough to withstand the gradual withdrawal of monetary stimulus.
The Milan bourse closed 0.19% down as banking stocks weakened.
London was 0.12% down, Frankfurt 0.10% down and Madrid 0.75% down.
Paris and Athens bucked the trend with respective gains of 0.03% and 0.62%.