Tuesday, August 26, 2014

The spread below the threshold of 150 points – Corriere della Sera

The spread below the threshold of 150 points – Corriere della Sera



Milan , August 26, 2014 – 10:13

     
     
 

dip below the level of 150 – up to 147 points in the morning and also in the closure of day – for the spread between BTP-Bund, while touching a record low 2.41% on ten-year Italian bond yield. Traders call it “effect-Dragons’ indicating market expectations towards the ECB president from whom we expect the launch of the so-called non-conventional measures, or” quantitative easing, “the purchase of securities of private and public already experienced by the United States to stimulate the economy and fight deflation and stagnation in Europe.

130 points down to even the spread between Spanish Bonos and the Bund, with a Spanish bond yield at 2.24%. The differential Italian is even lower than that of the British ten-year bonds (gilts) and the Bund which marks 151 basis points, with a rate at 2.44%. The auction of Ctz is successful and the two-year title tricolor marked a new record low since the birth of the euro at 0.326% gross. Tomorrow, if the positive trend should continue for Italian bonds, the Semiannual Bot could reach the threshold of 0.10%, according to market estimates.

Piazza Affari, after a slow start contrasted, finished the day in net increase, + 1.33% with the FTSE MIB to 20,645 points. On the main list of purchases have focused mainly on energy and banking. The positive tone was reinforced after the publication of some positive macro economic data for the United States. But Piazza Affari, in line with other European markets, has also continued to benefit from the reassurance of Mario Draghi about the intention of the ECB to use all the tools ‘available’ to ward off the risk of deflation.

August 26, 2014 | 10:13

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