©Reuters. Italy’s risk premium remains at 222 basis points
Rome, Aug 18 (.).- That of Italy, which measures the spread between the German bond and the Italian ten-year bond, closed this Thursday at 222 basis points, in line with the 222.8 in which it ended on Wednesday , and maintains attention in the face of global economic uncertainty and the general elections that the country will hold on September 25.
The 10-year bond yield ended at 3.32%, the same as 3.3% yesterday, Wednesday.
The Italian risk premium continues to move above, but close to, 220 basis points, compared to the 200 where it has been since the end of July, pending the imminent holding of the general elections in September and with doubts about whether the Energy prices will continue to rise in the remainder of the year, penalizing the economic growth of Italy and other EU countries.
Investors in Italy’s and the secondary debt market have welcomed the publication yesterday, Wednesday, of the minutes of the last monetary policy meeting of the United States Federal Reserve (Fed), in which the agency considered that it might be appropriate to stop the frenetic pace of interest rate hikes, despite the fact that at that meeting it made them more expensive by 75 basis points.
For this reason, the Milanese parquet has ended up gaining 1% and the risk premium has remained stable.
Italy, which had a public debt in 2021 that exceeded 150% of GDP) pays close attention to the high inflation and the movements of the central banks in terms of monetary policy because, a context of high interest rates forces companies and issuing governments of debt to offer a higher interest to find buyers for their bonds and obtain financing.