Spread between Italy, German bonds narrows to 188 bps
Measure of confidence shows best results since June 201118 February, 18:08
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%.