Italy, Spread hits 300 points before dropping back

Oct 2, 2018 2:09 pm

BTP yield reached 3.4%, highest level since 2014, at one stage


The spread between Italy’s 10-year BTP bond and the German Bund climbed to 303 basis points in early trading on Tuesday before dipping back below the 300-basis-points mark to 295. The yield on the BTP climbed to 3.43%, the highest level since spring 2014, at one stage, but then slipped down to 3.39%.

The spread, a key measure of investor confidence and of Italy’s borrowing costs, closed up 15 points on 282 on Monday after the European Commission criticised the government’s plan to allow the budget deficit to rise to 2.4% of GDP.

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