EU bourses cling to Wall Street and wait for the Fed, Milan closes at +0.4%. Spread at 202 pips

Spread stable at 202 pips, return at 3.8%

The Spread between BTp and Bund The session ended at unchanged levels by the end of the preliminary day for Euro bonds, which recorded limited movements. The yield spread between the ten-year BTp benchmark and the same German maturity settled at 202 pips at the end of the day, unchanged from the previous session. On the other hand, the rThe end of ten years BTp Benchmark held last at 3.80% from 3.77% at close overnight.

Euro breaks $1.05, yen hits lowest since 1998

On the foreign exchange front, the euro is consolidating above $1.05 and is trading at 1.0558 (from 1.0531 yesterday’s close). The yen was weak, falling to 143.81 per euro (from 142.15) and 136.19 per dollar (from 135.02) after hitting a new 24-year low of 136.34. The gas rush continues due to export cuts by Russia with prices reaching €125.5 per megawatt-hour (+4%). Finally, the price of oil rebounded with WTI futures for August at $110.14 (+1.22%) and Brent crude at $115.41 (+12%).

Savona: “A shield against inflation to protect savings”

Protect savings, a goal enshrined in the constitution, by creating investment portfolios with a “shield” to combat inflation while encouraging the flow of savings towards “production initiatives for companies of all sizes.” Paulo Savona, President of Consob, is using the stage of the annual meeting with the financial market to launch his “alternative proposal to tighten monetary and fiscal policy.” Savona, the dean of economists, notes that Italian savings remained well flat last year “but the first signs of 2022 are showing signs of slowing inflows”. Also clearly shown was “the tendency to invest in speculative instruments and in foreign markets, and choices are not always based on rational criteria.” He explains that the proposal “provides for a balanced composition between the activities of securities and real estate.”