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Renzi revels in narrowing spread of 169 points

'Lowest since 2011' boasts premier in Brussels

02 April, 19:13
Renzi revels in narrowing spread of 169 points (see related) (ANSA) - Rome, April 2 - Speaking from Brussels, Italian Premier Matteo Renzi on Wednesday reveled in the spread narrowing "to its lowest point since 2011". The spread between the Italian BTP State bond and its ultra-safe German equivalent was below the 170-basis-points mark, to 169, for the first time since the start of June 2011 at the close of 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%. On Wednesday the yield was 3.3%.

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.