Waiting for the government's trust, the spread rises again

06 June 2018
Waiting for the government's trust, the spread rises again

MILAN - The spread rises again to the business square, initially declining to 230 basis points, the yield differential has returned to rise to 250 points on the delicate day when the Prime Minister asks for confidence in the House. As for the ten-year BTPs, they returned to 2.9%.
Returning to yesterday, during the speech of the Conte to the Senate, has emerged the desire to fully respect the programmatic points of the government program Lega and M5s and this seems to worry investors already; the risk is that of not respecting the budget constraints imposed by Europe:
The analysts' concern, therefore, is not currently revised to a possible exit from the euro, but at the risk of overriding Italian public accounts with a particularly expensive government program.
As regards the stock market opening slightly upward but the positive phase is hard and, with the bank rebates, the price list turns red by 1%.
So in the expectation of the trust still uncertainty on the markets and we will see what will happen to the Lega / M5s government plan; Will Salvini and Di Maio be able to complete the program without being conditioned by the markets and by the strict European regulations?

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