[ad_1]
LONDON, June 2 (Reuters) – The difference between 10-year Italian and German borrowing costs fell to its smallest since January on Friday, in a vote of confidence from investors in one of the euro zone’s most indebted countries.
The so-called spread between Italy and Germany’s 10-year bond yields fell to 169 basis points (bps), the narrowest gap since January 19.
Analysts said a range of factors were boosting Italian debt. One is the sharp slowdown in euro zone inflation, shown in data released this week.
Another is the better economic performance of Italy compared to the wider single-currency bloc. Italy’s first-quarter economic growth figures were revised higher earlier this week, showing that gross domestic product expanded 0.6% in the first three months of the year. (Reporting by Harry Robertson; Editing by Amanda Cooper)
[ad_2]
Source link