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Spread between Italy, German bonds narrows to 188 bps

Measure of confidence shows best results since June 2011

18 February, 18:08
Spread between Italy, German bonds narrows to 188 bps (ANSA) - Rome, February 18 - The spread between Italy's 10-year bond and its German counterpart narrowed to less than 190 basis points in late trading Tuesday for the first time since June 30, 2011.

As the trading day ended, the spread between 10-year bonds in the two countries stood at 188 basis points with a yield on Italian paper of 3.55%. The spread measures confidence in the Italian economy compared with the ultra-safe market of Germany.

Analysts say investors seem heartened by changes in the Italian government, with Matteo Renzi, premier-designate, pledging to make significant economic reforms.

Italy risked a Greek-style financial meltdown late in 2011 when the spread stretched over 500 points with yields above 7%.

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