After the run on the eve of the eve, there is still tension on the spread between 10-year BTPs and German Bunds: the differential opened the session on the telematic markets at 220 basis points after yesterday's close at 216. The yield on the Treasury product is at 3 , 62% compared to a conclusion of the previous day at 3.58%.
Negative start of session for Piazza Affari: the first Ftse Mib index marks a fall of 0.66%, the Ftse All share a decrease of 0.63%.
Equity markets on the Old Continent all fell slightly at the start of the session: London opened 0.5% lower, with Paris negative by 0.6%, Frankfurt and Amsterdam by 0.7%.
Madrid fell by 0.6%, with a fractional decline (Moex index -0.3%) by the departure of the Moscow stock market.
THE CLAW OF THE ECB
- Goodbye, after seven years, to the purchases of public debt by the ECB.
And goodbye also to the era of negative interest rates, with a first hike in July from a quarter of a point, followed by another one in September probably from half a point.
As for the 'anti-spread shield', Frankfurt is committed, for the moment, only verbally and without giving itself a threshold beyond which to intervene.
The June meeting of the ECB, this time away to Amsterdam, could not have had a more appropriate venue than the one offered by the Dutch central bank where the 'hawk' Klaas Knot sits.
Because between the risks of out-of-control inflation due to war and energy prices, and the risks of recession caused by skyrocketing prices, the ECB has decided to focus on the former, following in the footsteps already traced by the Fed.