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Italian spread drops below 170-points mark

First time since early June 2011

02 April, 10:40
Italian spread drops below 170-points mark (ANSA) - Rome, April 2 - The spread between the Italian BTP State bond and its ultra-safe German equivalent dropped below the 170-basis-points mark, to 169.5, for the first time since the start of June 2011 in early trading on Wednesday.

The bond spread is an important measure of investor confidence in Italy and of the country's borrowing costs.

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

The country's borrowing costs have been falling since Premier Matteo Renzi unseated his Democratic Party colleague Enrico Letta in February and took the helm of government promising to revive the economy and reform the country's slow and expensive political system.