Rome [ENA] Six months after the Brexit vote, the spread between Italy's 10-year BTP State bond and the German Bund mounted to 200 basis on Monday, with the yield up to 2.35%. The spread, an important measure of investor confidence and of Italy's borrowing costs, had not been so high since February 2014. The spread closed at 184 points on Friday. “Italy doesn't risk an EU budget infringement procedure” Paolo Gentiloni said.
" I don't think there are elements pointing in this direction and in any case we are surrounded by countries that are in an infringement procedure and they don't seem to be very embarrassed," he said according to Italian Press Agency ANSA, answering a question on whether a possible procedure would humiliate Italy as it marks the 60th anniversary of the Treaty of Rome next month. "Anyway Italy isn't running this risk," he held.
Gentiloni said he was "confident that the (budget) talks between the (European) Commission and the Treasury will conclude positively". He added "Italy is a country that has decided to respect the EU rules and it will also do so at this juncture”. In Italy, however, sales weighed on government bonds. They lowered cost letting the yields going up dramatically . An unfavorable environment for Italy with a high debt and menaced by the EU for a possible request for an additional measures in the budget package.