10-year Italian bond yields fall to 0.50%
Super Mario is back and the market continues to show a vote of confidence in him as BTPs push higher with yields falling to a record low in the European morning today.
The ECB also has a helping hand in all of this but the market is certainly liking the idea of Italian politics having a familiar figure at the helm.
The transformation of Italian bonds over the past year is quite notable, especially since Lagarde & co. had previously claimed that they were "not here to close the spreads". That said, there is still some credit risk involved with the spread being ~95 bps.
But as we get accustomed to this whole new market paradigm, would it be too crazy to imagine Italian yields going negative? Now that would be something for the ages.
