(Image Source: La Presse)
Spreads at their highest since May 2020, reaching 200 basis points
In the Italy of “whatever it takes “license plate Mario Draghi anxiety comes back from spread. The differential between Italian government bonds and their German counterparts touches and exceeds 200 points at the opening of the session, and then drops slightly below, recording a new record that has not seen the light since May 2020. yield of Italian securities, driven by the expectation of a rate hike in the Eurozone, in fact, within a few sessions, expanded to over 190 basis points, against ten-year rates which, in the wake of the jump in those of Treasuries Usa, are aiming straight at 3%, currently hovering around 2.89%.
In this context, the effect “whatever it takes“Of the premier Mario Draghi: if we think that the spread “has more than doubled from the lows of 90 basis points in February 2021, when the markets, seized by euphoria, applauded the birth of the Draghi government, with ten-year BTP rates that capitulated to an all-time low of the 0.45% in February, “he notes Finanzaonline.it.
Also, it should be remembered that “the spread BTP-Bund it had actually widened to 280 basis points in mid-March 2020, compared to 130 basis points in mid-February “.” Subsequently, by the end of July, it had shrunk to 145 basis points, thanks to the saving action of ECB “, he stresses again Finanzaonline.it awaiting the advent of Mario Draghi.
Finally, on the currency market, The dollar continues to gain ground following the Fed rate hike and pending the US labor market data that could reinforce fears of a tightening of monetary policy. The euro exchange rate moves down to around 1.0530. The single European currency, on the other hand, gains some positions against the yen around the quota.