ROME (Reuters) – The yield spread between German and Italian 10-year government bonds would be a problem if it reached 340 or 350 basis points, Federico Freni, the ministry’s undersecretary, said on Thursday Italian Economy.
This spread, which measures the risk premium between the two sovereign debts, is currently around 190 points for the ten-year, its highest level since the beginning of May.
Speaking on Radio 24, Federico Freni said a gap of around 200 basis points was “not a worrying rate at all”.
“I think a warning threshold could be the high reached in the last three or four years, which is 340 and 350 basis points,” he added.
Italy’s public debt, which is proportionally the highest in the euro zone after Greece, is expected to remain stable at around 140% of GDP until 2026, according to the Italian Treasury’s economic and financial document (DEF).
(Report by Giuseppe Fonte, French version by Claude Chendjou, edited by Jean-Stéphane Brosse)
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