Italian/Deutsche bund spread starting to move as Italian budget crisis continues


The above chart shows daily price action. The Italian-German 10-yr yield spread is at 3.01%. The middle indicator is the RSI(14). The black horizontal is the 50 level. The bottom indicator is the MACD histogram. The RSI(14) is above the 50 level (green ellipse) and the MACD histogram has ticked up (upsloping green trendline) This is likely due to an escalation in the uncertainty regarding Italy’s budget deficit and the EU’s rejection of its initial proposal. According to Giovanni Tria, the Italian finance minister, Italy is still committed to a 2.4% deficit in 2019. This, while the EU’s, Moscovici is expecting a revised Italian budget by 13 Nov.

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