Spread under 300 points after budget

(ANSA) - Rome, October 16 - The spread between Italy's 10-year BTP bond and the German Bund dropped below the 300-basis-points mark in early trading on Tuesday after the government presented its draft budget. The spread, which closed at 304 points on Monday, fell to 296 points. The yield on the BTP fell from 3.55% to 3.48%. The budget will see Italy's deficit-to-GDP ratio rise to 2.4% next year, which has prompted the European Commission to express concern it may breach the Stability and Growth Pact.
    The League-5-Star Movement executive have said critics of the budget plan are not taking into account the positive effects it will have on growth, which they say will bring down the debt-to-GDP ratio.