Draghi's continuity relieves pressure on the Italian bond

MADRID, 20 Jul. (EUROPA PRESS) -

The possibility that Mario Draghi will continue to lead the Italian Government has relaxed the pressure on the transalpine debt, allowing the required return on the ten-year Italian bond to fall to a one-week low.

The interest of the Italian bond with a ten-year maturity fell this Wednesday to 3.269%, the lowest yield since last Thursday, after having exceeded 3.5% these days in the face of the open political crisis in the Government and which led Mario Draghi to tender his resignation as Prime Minister.

In this way, the risk premium offered to investors by Italian ten-year bonds with respect to the German 'bund' narrowed to just over 200 basis points, after having reached 230 at the end of last week.

The Prime Minister of Italy, Mario Draghi, who presented his resignation last week after the absence of the 5-Star Movement in the vote on a matter of confidence in the Senate, has shown this Wednesday that he is willing to remain in office if the problems are resolved. disputes within the governing coalition.

"A firm and cohesive government is necessary. Italy needs a concrete and sincere development pact," said Draghi, who has demanded Parliament "support" the Executive and "mutual respect" for the role of each of them. "Italy does not need a facade of confidence that fades when there are untimely measures," he explained.

In addition to the possible solution to the political crisis in Italy, the relaxation of the pressure on the Italian debt is also due to the expectation regarding the meeting of the European Central Bank (ECB) this Thursday, in which the entity will undertake its first increase of interest rates since 2011 and possibly offer details on its new tool to combat fragmentation in debt markets.