Rome, August 9 - The spread between Italy's 10-year BTP bond and the equivalent German Bund narrowed to below 250 basis points for a time on Friday afternoon, its lowest point in two years. The interest rate on Italian 10-year paper was 4.20%. At one point during trading, the spread slipped to 248 points - the lowest level seen since July 2011. But later in the day, it returned to just above the 250 mark and into territory that has been more common in recent days. The spread reflects investor support for the Italian economy compared with Germany, which is considered more stable. The narrower spread suggests confidence in the Italian economy, which should be noted, said Premier Enrico Letta. He complained that too often, good news is overlooked – including such positive economic news as narrowing bond spreads. "I hope that Italian politics has not forgotten the importance of interest rates and spreads," Letta said. "I got the impression that (the spread) was discussed so much in 2011, then as often happens in Italy there was an overdose and it is not talked about anymore".