Milan bourse soars on new govt, spread falls sharply

Markets positive with Conte's M5S-League executive arriving

(ANSA) - Milan, June 1 - The Milan stock exchange's FTSE Mib index rose 1.49% to 22,109 points on Friday with bank stocks leading the way as Giuseppe Conte was sworn in as premier of a 5-Star Movement/League government.
    The spread between Italy's 10-year BTP bond and the German Bund plunged to 218 basis points, with a yield of 2.56%, in early trading on Friday as the end of the political deadlock that following the March 4 general election within reach. It eventually closed on 226 points with a yield of 2.64%.

The spread, an important measure of investor confidence and of Italy's borrowing costs, closed at 241 points on Thursday. The spread between the two-year BTP and its German equivalent also fell sharply, dropping to 117 points with a yield of 0.51%.
    The spread on the two-year bond hit 343 points, the highest level since 2012, at the peak of the institutional crisis three days ago.


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