CHART OF THE DAY: Italy's Prime Minister Has A Freakishly Specific Target For His Country's Borrowing Costs

button more charts
button chart prev
button chart next

There has been a big rally in European sovereign debt markets as borrowing costs for countries like Greece, Spain, Portugal, and Italy have come way down.

In Italy’s case, the spread between its 10-year borrowing costs and Germany’s 10-year borrowing costs (a crucial benchmark) fell below 300 basis points today.

Below is a 5-year chart…

Photo: Bloomberg, Business Insider

However, according to Mario Monti – Italy’s technocratic prime minister – it’s not quite enough.

Monti said, according to Bloomberg, that he would like the spread to get to 287 basis points.

And that’s great, but wow – that is awfully specific. We have never heard of a head of state making such a specific goal before. But Monti is a former ECBer and adviser to Goldman Sachs. He’s not a politician, and he knows finance.

By making such a specific spread goal, he’s really redefining the word “technocrat.”

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.