Spread between Germany, Italian bonds touches new low

(ANSA) - Rome, August 26 - The spread between Italian and German 10-year bonds flirted with a new record low of under 150 basis points in early trading Tuesday amid speculation of fresh policy action by the European Central Bank. The yield on the Italian 10-year bond slipped to 2.43% at one point during trading. The spread is an indicator of confidence in Italy.
    Markets are moving in anticipation of possible asset purchases by the ECB, which has said it would take whatever actions are necessary to return Europe's struggling economy to the bank's target rate of inflation.