The spreads for almost all the States, over the yields of Central Government securities of comparable maturity during 200607 and 2007-08 so far, has remained well below 50 basis points (spread fixed in the case of tap issuances), reflecting favourable market perception.
In interpreting this evidence, one should keep in mind that the market is currently preparing for the year-end, which regularly causes market tensions, and there is hope that some recovery could take place early next year. BIS Review 154/2008  7  These measures are often criticised on three grounds.