European government bond yields fell sharply after the ECB meeting and the prospects of an easing of monetary policy. At mid-day the spread between BTPs and Bunds continues at 138 points.
The yield on the Italian ten-year bond fell by ten points to 3.76% and the German one at 2.38% (-8 basis points) Yields in Spain fell by eight basis points to3.19%, France to 2.87% and Greece to 3,42%. . European government bond prices fell by 0.4% on Thursday. The euro fell 0.3% on the day, the first day of the European Central Bank’s monetary policy meeting, and 0.5% on Friday. The dollar rose 0.2% against a basket of currencies on Thursday, the lowest level since mid-November. The euro was up 0.1% against the yen, the highest level since early November.