The Italian government crisis flattens the yield differential between Italian and Greek government bonds, with Athens two-year bonds now deemed less risky, and 10-year bonds separated by only 7 basis points, the minimum since the beginning of 2022. The ten-year BTP yields 3.374%, compared to 3.442% in Greece. The spread drops to just under 2 basis points for the five-year period (2.629% for Italy and 2.645% for Greece) while on the short term Greece beats Italy by 13 basis points: Athens returns 1.616% while Rome 1.747%.
The BTP-Bund spread closes at 212 basis points. The yield differential between Italian and German stocks widened by 8 basis points compared to yesterday’s close and by just under 20 points compared to the lows of the day, marked after the opening of Draghi, in his communications, to the continuation of the government in the presence of broad support from the Parliament. The yield on BTPs, the worst of the Eurozone government bonds, rose by 6 basis points to 3.37%.
Piazza Affari wears the black jersey among the European stock exchanges, serving the concerns of investors for the future of Mario Draghi’s government, on whose communications the Senate is preparing to vote for confidence. The Ftse Mib lost 1.6% with Italgas (-4.2%) and Saipem (-3.9%) leading the falls. Intesa (-3.5%) leads the declines among banks, penalized by the growth of the spread and waiting to hear the decisions of the ECB on rates 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%), Mediolanum (-2.2%) and Fineco (-2.1%). The energy stocks led by Enel (-3.1%), Snam (-2.4%) and Terna (-2.4%) are also bad. Only Stm (+ 2.2%), Diasorin (+ 1.5%), Tim (+ 0.8%) and Moncler (+ 0.5%) resist sales.
The risk of an end to the Draghi government weighs on the euro, which goes to the low of the day on the dollar. The single currency, which has progressively weighed down in the last few hours, is down about 0.5% against the dollar, and trades at 1.0178.
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