by Calculated Risk on 8/08/2011 08:34:00 AM

Here is a graph of the 10 year spread (Italy to Germany) from Bloomberg. And for Spain to Germany.

The Italian spread is at 299, down from 371, and the Spanish spread is at 289 down from 387.

The European markets are in the red with the DAX down 2.3% and the FTSE down 1.6%.

From the Financial Times: ECB buys up Italian and Spanish debt

Borrowing costs for Spain and Italy tumbled on Monday as the European Central Bank intervened to buy the countries’ respective bonds ... Dealers reported that the ECB had started buying the debt as soon as European bond markets opened.
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