Following a 2013 that saw euro area peripheral government bond spreads fall dramatically, 2014 has seen further reductions in funding costs. Spanish and Italian 10Y spreads to Bunds are now around 200bps, having ended 2013 around 20bps above that level. That compares very favourably to the start of 2013, when Italian spreads were almost 320bps, while Spanish spreads were close to 400bps...