The Italian debt office says the total 2012 issuance target is now closer to €440 billion than €450 billion.
The LTRO money appears to be finding its way into Italian debt, with 10-year yields 5 basis points lower today to 4.83%. It’s more impressive if you consider that Germany 10-year yields are up 9 bps, leaving the spread 16 bps tighter on the day.
The Italian debt mamangement head says the Italian/German bond spread can tighten by another 100 basis points, at least.
At the moment, the FX market is more concerned about growth, with EUR/USD falling back to 1.3057.
