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MNI BRIEF: Rome Sees Spread Red Light At +340-350 - Government

(MNI) Rome

Italy's government feels the current spreads between Italian and German ten-year bonds -- currently around 200 basis points -- are not concerning and won’t be until it reaches the “guard threshold” presently seen in the range of 340-350 basis points, undersecretary for the Economy, Federico Freni, said on Friday.

The current situation is “very different” to 2011 as market confidence in Italy is much higher, Freni said in a radio interview, adding that spread levels are not even at the highest point of 2023.

Regarding upward revisions to the public deficit to 5.3% and 4.3% for 2023 and 2024 respectively, Freni does not see a high chance it will be used to “boost growth” and he doesn’t think it will cause problems with Brussels as Italy kept the reduction path of debt to GDP ratio for the following years.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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