Yield on Italian 10-yr bonds 3.64%, lowest since Feb 2006
Spread with bund sinks to 195 basis points17 February, 12:44
The spread between interest rates on 10-year Italian and German paper slipped to 195 basis points.
The spread is a key measure of Italy's borrowing costs and of investor confidence in the country's ability to pay down its outsized debt.
The difference between Spanish and German bonds reached 186 basis points, with the yield on Spanish 10-year bonds marking its lowest level since March 2006 at 3.55%.