Spread ends day on 308, yield lowest since August
Merkel compliments Monti
Thursday, 1 March 2012
01 March, 20:02
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(ANSA) - Rome, March 1 - The spread between 10-year Italian and German bonds fell to a new six-month low of 308 points by the close of trading Thursday.
The yield, another measure of market sentiment, fell to 4.95%, its lowest since August.
Boosted by the news, the Milan bourse closed 2.93% up, the biggest jump in Europe.
Italian Premier Mario Monti met German Chancellor Angela Merkel in Brussels Thursday on the sidelines of a European Union summit on striking a balance between austerity and growth.
Merkel complimented the Italian premier on the spread trend, Italian sources said, and she noted that Italy under Monti's stewardship had moved away from the centre of the eurozone debt crisis.
The leaders agreed that "after a long time, the tension and drama have now been overcome," the sources said.
On Wednesday Monti said he thought the spread's downward trend would continue as markets increasingly recognise Italy's austerity measures and structural reforms.
In his meeting with Merkel, Monti hailed the scheduled signing Friday of the EU's new fiscal compact, stressing's Merkel's lead role in its creation.
Monti also said he saw a "positive" end to the latest Greece bailout.
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