The yield differential between Italy and Greece widens further today, with BTPs further losing ground compared to Greek government bonds. This morning the spread between Italian and Greek government bonds went up to 31 basis points, on the highest ever. The yield of the 10-year BTP is currently 3.3%, while that of Greece is 3.04% with the Ita-Gre spread down to 26.
The yield of the ten-year BTP travels above that of the same Greek duration since last July 21 when the fracture within the government majority was consummated with the consequent fall of the Draghi government. Now the market fears the heightening of political uncertainty in Italy.
Investors fear above all that from the next elections on 25 September an affirmation of Eurosceptic forces could emerge with the latest polls giving the center-right the advantage and the Brothers of Italy as the first party.