The differential between BTp-Bund continues to grow in small steps with an eye to the new government and the ECB moves. And in the background, the British gilt crisis remains a warning.
by Maximilian Cellino
Market day 27 September
Advance in small steps, day after day, without creating alarmism, but with a continuity that becomes difficult to ignore. The spread between BTp and Bund has reached 250 basis pointstowards the threshold that for many represents a sort of Piave line for the yield differential of Italian and German government bonds: the one that a few months ago would have forced the ECB to an urgent summit to launch the Transmission protection instrument (Tpi), not surprisingly popularly known as «…
