The risk premium of Italiawhich measures the spread between the German and Italian ten-year bonds, soared this Wednesday to 258 basis points, and then dropped to 252, levels that had not been reached since the start of the pandemic in 2020.
In addition, the Italian ten-year bond yield reached 4.81%, which is a new maximum since 2013.
Despite a positive opening, by mid-morning the Milan Stock Exchange changed to negative and accumulated up to a drop of 1.58% to 20,629 integers.
According to analysts, the markets are uneasy about the outcome of this Sunday’s elections in which the right-wing coalition led by Brothers from Italy, of Giorgia Melonialthough the Italian stock market has reacted better than the rest of the European markets.
But Italy is also weighed down by the rise in interest rates and rumors of a recession in 2023. For experts, the risk premium in Italy will remain high until the next government is formed and the Budget law is presented.
The markets expect above all the appointment of the next Minister of Economy and in a name that reassures and points to Fabio Panettacurrent executive director of European Central Bank.