Italy-Germany bond spreads should not lead to complacency - Intesa CEO
MILAN, April 23
MILAN, April 23 (Reuters) - Bond yield spreads between Italian BTPs and German bunds below November 2011 record highs should not make Italy's politicians complacent, Intesa Sanpaolo MI> Chief Executive Enrico Cucchiani said on Tuesday.
The spread between Italian and German bonds fell on Tuesday to 270 basis points, to the lowest level since mid-February, on hopes Italy could form a government in the next few days. "The spread around 300 basis points is indeed lower than what it was at the peak of the crisis, but this has a narcotic effect on our politicians," Cucchiani said. "Policymakers believe that everything is under control now."
Cucchiani was attending the presentation of a book written by former ECB executive board member Lorenzo Bini Smaghi. (Reporting by Francesca Landini, editing by Jennifer Clark)