The Italian risk premium hits one-month highs after the last government crisis

MADRID, 15 Jul. (EUROPA PRESS) -

The open crisis in the Italian Government, after the resignation of the Prime Minister, Mario Draghi, not accepted by the President of the Republic, Sergio Mattarella, has led to the difference between the required return on the ten-year Italian bond and the ' bund', the equivalent German benchmark, will widen to record highs since the middle of last June.

Thus, the first risk offered to investors by Italian bonds with respect to the 'bund' has reached 230 basis points this Friday, which represents the widest 'spread' between the two references since mid-June, although after the closure of markets in the Old Continent, the spread was reflected to 223 basis points.

However, the interest required in the secondary market for Italian bonds with a ten-year maturity, which reached 3.391% this Friday, is still far from the levels above 4% registered a month ago, before the announcement by part of the European Central Bank (ECB) that it was accelerating the design of an anti-fragmentation mechanism to facilitate the transmission of its monetary policy.

In the case of the ten-year Spanish bond, which a month ago exceeded the 3% yield threshold for the first time since 2014, it remained slightly above 2.2% this Friday, with a differential in relation to the equivalent German bond less than 120 basis points.