©Reuters. Fear of a recession pushes Italy’s premium to 222 basis points
Rome, Aug 17 (.).- That of Italy, which measures the spread between the German bond and the Italian ten-year bond, closed this Wednesday at 222.8 basis points, at the levels of the end of July, and the yield of the ten-year bond has exceeded 3%, ending at 3.3%, due to fears of a worsening of the world economic situation at the end of the year.
The Italian risk premium has remained close to 200 basis points in recent days, but this Wednesday it has climbed to 222, from 215 at the opening, because the country’s debt was in 2021 more than 150% of GDP and it is sensitive to uncertainties arising from the war in Ukraine, inflation and the next steps in monetary policy by central banks.
This Wednesday, the tensions have reflected the fear of a possible global recession at the end of the year, after the Eurostat community statistics office published that the GDP of the eurozone expanded by 0.6% in the second quarter compared to the previous quarter, one tenth less than what was advanced at the end of July.
Also disappointing was the US retail sales data for July, which was unchanged and shows that rising prices are forcing households to be more prudent in their spending.
In this sense, investors have remained pending the publication of the minutes of the last meeting of monetary policy of the Federal Reserve (Fed) of the United States to try to predict if the organism will undertake a new rise in the interest rates of 75 basic points to curb prices and analyze what impact this decision could have on the economic growth of the country and the rest of the world.