Lunedì, 22 Ottobre 2018

Markets up after good Italian bond sale, but spread widens


(ANSA) - Rome, July 30 - The Milan bourse was the strongest
European performer and Italy enjoyed positive results on a key
bond sale, but pressure on the bond market crept up on Monday.
The Treasury sold almost all of its maximum target of 5.5
million euros worth of BTPs at a lower rate than the last
equivalent sale.
The Treasury said it sold 5.48 billion worth of bonds in
total, and that the interest rate on the 10-year BTPs was down
to 5.96%, compared to 6.19% at an auction at the end of June.
The interest rate on the five-year BTPs it sold went down
to 5.29% from 5.84 last month.
But pressure on Italy's bonds rose in trading on the day
when the spread between 10-year BTPs and the German benchmark
widened to 465 points.
The yield spread, an important indicator of the markets'
faith in Italy's ability to weather the eurozone crisis, closed
at 6.03%.
Despite pressure on the money markets, Milan's stock market
closed up for the fourth day in a row, gaining 2.8% to close at
13,978 points.
Markets were up across Europe.
Frankfurt's DAX index gained 1.27% to close at 6,774.06
Paris's CAC 40 earned 1.24% and closed at 3,320.71.
London's FTSE 100 earned 1.18%, closing at 5,693.63.
Investors were cheered after receiving more positive
signals about the European Union's determination to solve the
eurozone crisis following European Central Bank President Mario
Draghi's statement on Thursday that his body would do everything
necessary to save the single currency.
Italian Premier Mario Monti and German Chancellor Angela
Merkel said on Sunday they were ready to take all necessary
measures to protect the single currency and Eurogroup President
Jean-Claude Juncker said all the members of the eurozone were
prepared to buy the bonds of countries facing soaring borrowing
Earlier last week, fears that the eurozone crisis was
deteriorating and that Spain would need a bailout drove the
spread up to 537 points, a level not seen since last November,
when Italy's ex-premier Silvio Berlusconi was driven from

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