Italy-German 10-year spread drops below 250 bps

By: Adam Button

German yields are higher today but most of the move comes from Italian 10-year yields down 7 bps today to 4.09%. A long way from 6.50% in July. Spanish 10s have also broken below 5% today from 7.50% in July. The improvement in periphery borrowing costs is by far the #1 reason to be long euros in 2013.