The market felt supported by the ECB, which despite announcing the end to QE in December, also announced not to raise rates for at least 12 months.
Die Krise in Italien hat das Thema Handelskrieg und das Hin und Her beim geplanten Gipfeltreffen von US-Präsident Trump und Nordkoreas Machthaber Kim Jong-Un in den Hintergrund gedrängt. Was in Italien im März als Kräuseln begann, nahm Anfang dieser Woche allmählich Tsunami-ähnliche Ausmaße an.
Last week the Italian Premierminister Giuseppe Conte called on his first speech of Contefor a reform of the monetary union. Meanwhile the Spain prime minister Pedro Sanchez sent a strong pro-European message.
Last week has been full of unpredictable about-turns on the Italian political scene, big enough for short-dated BTPs to price in a significant denomination risk, in other words a non-negligible risk of Italy leaving the euro.
Investors leave Italien government bonds due to growing political uncertainty. In Spain - it seems - rises another crisis.
Especially Italian government bonds came under significant pressure last week after the Huffington Post published a leaked draft version of a 5star – League coalition agreement. Meanwhile in Catalonia new regional elections had been avoided.
Coming as a last minute surprise, the two italian populist parties have agreed to form a government alliance. Meanwhile Catalonian separatist parties intend to elect their regional president this week.