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Spread closes two points down

Yield down to 3.82%

22 January, 19:08
Spread closes two points down (ANSA) - Rome, January 22 - The spread between Italian 10-year bonds and their AAA-rated German equivalents, the premium investors pay to hold Italian paper, closed two points down at 207 Wednesday, keeping close to its lowest since Italy risked sparking a euro crisis in late 2011.

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%.