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Italian stock exchange rallies on falling bond rates

Spread between German bunds and Italian BTPs at 210 points

30 January, 19:59
Italian stock exchange rallies on falling bond rates (ANSA) - Milan, January 30 - The Italian bourse added 0.38% to close at 19,411 points after the interest rate on five-year Italian State bonds fell to an all-time low at auction on Thursday.

The Treasury sold four billion euros' worth of BTP bonds set to mature in May 2019 at an average interest rate of 2.43%, compared to 2.71% at an auction in December. It also sold three billion euros' worth of 10-year BTPs, with the interest rate dropping back below 4%, at 3.81%, after going for an average of 4.11% at a December sale.

The spread between Italian BTPs and German bunds, an important indication of investor faith in the Italian economy, fell to 210 points.

Elsewhere in Europe, Spain's IBEX index added 0.50% to close at 9,945.60 points on news that Spanish GDP grew by 0.3% in the fourth quarter. The Parisian CAC-40 index gained 0.42% to close at 4.174,43 points and in Frankfurt, the DAX index rose by 0.39% to close at 9.373,48 points.

London was flat, with the FTSE-100 index shedding 0.09% to close at 6,538.45 points.