10-year Italian bond drops to record low

(ANSA) - Rome, March 10 - The yield on Italy's 10-year bond fell on Tuesday to a new record low of 1.21% while the spread between it and its German counterpart edged slightly higher to close at 98 basis points.
    On Monday, the spread was 96 basis points.
    Interest rates on both nations' bonds fell Tuesday following the beginning of the European Central Bank (ECB) quantitative easing program involving massive bond purchases by central banks. The spread between Italy's BTP and the German Bund has often been used as a measure of investor confidence in Italy compared with the ultra-safe German paper.
    During the sovereign debt crisis, Italian yields soared and the spread with Germany rose about 500 basis points.