Spread Btp / Bund
Collapses fin below the threshold of 200 basis points the spread between BTp and Bund, after a start up to 284 basis points, dragged down by the launch of the new ECB Qe for 750 billion. The yield differential between the 10-year Italian and German benchmarks now stands at 201 basis points, down sharply from yesterday’s close at 271 basis points. The yield also fell to 1.70% from 2.48% of yesterday’s reference.
The foreign exchange market
On the market exchange rates euro / dollar slightly moved to 1.0852 from 1.0832 yesterday at the close of European markets. The single currency strengthened against the yen at 118.39 (117.78) and especially against the pound sterling, at 0.9452 from 0.9219. The British currency also fell sharply against the dollar, to 1.1487 from 1.1634, while the greenback gained ground on the yen and stood at 109.05 (108.05). The pound thus updates the lows since 1985 against the dollar. Oil bounces off its 18-year low: April futures on the WTI rise by 10.11% to $ 22.43 a barrel, while May delivery on the Brent marks + 4.78% at $ 26.07.
Michel: good ECB
“Europe is pursuing a strong economic response to the Coronavirus crisis. No effort will be spared to contain Covid-19 and protect our economies from further damage, “said the President of the European Council, Charles Michel, on Twitter, positively greeting the new ECB PEEP securities purchase program.
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