The Italian government crisis has leveled the yield differential between Italian and Greek government bonds, with Athens two-year bonds becoming less risky, and 10-year bonds separated by only 7 basis points, the lowest since the start of 2022. BTP yields 3.374%, compared to 3.442% in Greece. The spread drops to just under two basis points for the five-year period (2.629% for Italy and 2.645% for Greece) while Greece outperforms Italy in the short-term by 13 basis points: Athens returns 1.616% while Rome 1.747%.
The BTP-Bund spread closes at 212 basis points. The yield difference between Italian and German stocks widened by 8 basis points compared to yesterday’s close and a difference of just under 20 points compared to today’s lows, which was marked after the opening of Draghi, in his contacts, for the government’s continued presence of broad support from Parliament. The yield on BTPs, worse than government bonds in the eurozone, rose by 6 basis points, to 3.37%.
Wearing the black shirt among European stock exchanges, Piazza Avary serves investors’ concerns about the future of Mario Draghi’s government, whose communications the Senate is preparing for a vote of confidence. The Ftse Mib lost 1.6% with Italgas (-4.2%) and Saipem (-3.9%) topping the downside. Intesa (-3.5%) leads the interbank declines, weighed by spread growth and awaits to hear ECB interest rate decisions tomorrow. With Ca’ de Sass, the entire financial sector suffers a bit, with Generali (-2.9%), Bper (-2.9%), Unicredit (-2.8%), Banco (-2.3%), Poste (-2.2%), and Mediolanum (-2.2%). -2.2%) and Finico (-2.1%). Energy stocks led by Enel (-3.1%), Hump (-2.4%) and Terna (-2.4%) are also bad. Only Stm (+2.2%), Diasorin (+1.5%), Tim (+0.8%) and Moncler (+0.5%) are resisting sales.
The threat of an end to the Draghi government is weighing on the euro, which is headed for an intraday low on the dollar. The single currency, which has been gradually declining in the past few hours, is down about 0.5% against the dollar, and it is trading at 1.0178.
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