The spread between Italian BTPs and German Bunds remained effectively stable at the opening of the day on May 28, with a slight increase that brought it to 74 basis points. A slight recovery in yields, however, returning above 3.70%, reaching +3.75%.
Auctions will be held today for various government bonds: 5, 10 and 20 year BTPs and BTPCCTeus. All the data for investing.
Increase the spread
In the early hours of May 28th the spread between BTPs and Bunds increased slightly, reaching 74 basis points compared to the 73 at which it remained throughout yesterday. This is a stable opening, especially considering the resumption of hostilities between the United States in Iran, which has once again removed the possibility of a solution to the conflict in the Middle East through peace talks.
The yields on government bonds, both Italian and German, are stable: the Bunds reached 3.01% on average for the 10-year benchmarks, while the 10-year BTPs stood at just above 3.70%, a level that is rising again after days of decline, again due to the conflict in Iran, which had destabilized their prices.
European spreads stable
The government bonds of the other large European countries also remained stable in the early hours of today 26 May, without shocks from the point of view of the differential, but with a slight drop in yields in some cases.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 3.01% | – |
| Italian BTPs | 3.75% | 74 |
| French Oats | 3.63% | 62 |
| Spanish bonos | 3.43% | 43 |
Spanish Bonos saw the spread with Bunds remain stable slightly at 43 points, but saw yields grow to 3.43%. The French Oat instead rose above 3.60%, bringing the differential to 62 basis points.
The auctions at the end of May
The Treasury starts the end-of-May auctions today, with that of 5, 10 and 20-year BTPs and CCTeu, floating rate securities from 3 to 7 years.
| Government bonds | ISIN code | Expiration | Annual coupon | Maximum amount offered |
|---|---|---|---|---|
| 5 year BTP | IT0005707614 | 1/06/2031 | 3.15% | 3-3.5 billion euros |
| 10 year BTP | IT0005706285 | 1/07/2036 | 3.80% | 2-2.5 billion euros |
| 20 year BTP | IT0005177909 | 1/09/2036 | 2.25% | 1-1.25 billion euros |
Alongside the auction of BPTs, the Mef has also included the auction of two variable rate CCTeus linked to the European money market.
The first:
- Isin code IT0005707689;
- expiry date 15 November 2036;
- rate of 3.237%;
- amount offered 1.5-2 billion euros.
The second:
- Isin code IT0005680753;
- expiry date 15 April 2035;
- rate of 3.237%;
- amount offered 1-1.25 billion euros.
The auctions will end on May 28th, there will be an additional auction on May 29th.
