Why is there demand in the short, to immediate-term debt markets? Four little letters: LTRO.
Banks can buy 3-year-debt and fund it at 1%. Stay calm and carry on… Carry, get it?
- Grilli says hopes that recent fall in Italian bond spreads will continue
- Narrower spread a signal of confidence in Italy more than a measure of ability to service debts
- Markets more interested in policies than ratings agencies marks
Comments via Reuters.