The spread between Italian BTPs and German Bunds recorded another decline after the one at the beginning of the week. The spread reached 70 basis points, a threshold it had not reached for weeks. Yields are also decreasing, close to 3.60%, while the collection of BTP Italia Sì continues.
Government bonds indexed to inflation and dedicated to the retail market have allowed the Treasury to obtain 5.35 billion euros, public debt that will end up in the hands of Italian citizens. Recent governments have pushed hard on this type of product, to expand the portion of “internal” debt.
The spread between BTPs and Bunds falls further
After a day of stagnation on June 16th, at the opening of the 17th the spread between BTPs and Bunds began to fall again. The spread reached 70 basis points for the first time since the Middle East war began. An important signal of the markets’ confidence in a definitive agreement between the USA and Iran, at a time when, especially among European leaders, there is a lot of mistrust towards the solidity of the memorandum.
Yields also approached a new minimum threshold, 3.60%, with benchmark 10-year BTPs reaching 3.62%. Bunds, on the other hand, further reduced their coupons to 2.92%. Again, yields on Italian government bonds had not been this low since the early days of the war in the Middle East.
European yields also fell
European spreads did not follow the trajectory of the Italian one, but instead remained stable. The yields on government bonds of the main countries on the continent have fallen at the same pace as those of Germany, consequently keeping the spread stuck at the levels of recent days.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 2.92% | – |
| Italian BTPs | 3.62% | 70 |
| French Oats | 3.54% | 62 |
| Spanish bonos | 3.34% | 42 |
In Spain, Bonos reached a yield of 3.34%, with a spread compared to Bunds of 42 points. In France, Oat reduced coupons to 3.54%, with a differential of 62 basis points.
Btp Italia Yes at 5.32 billion, collection slows down on the second day
Yesterday marked the end of the second day of the issuance of Btp Italia Sì, government bonds indexed to inflation and reserved for the retail market. The Treasury received 2.18 billion euros in orders for these securities, equivalent to 71,026 contracts. A slowdown compared to the first day, with the total reaching 5.32 billion euros. The issue will end on Friday 19 June.
The other June auctions will start the following week:
- Wednesday 24 June, the auction of Short Term BTPs and BTP€i;
- Thursday 25 June, the Bots auction;
- Friday 26 June, the medium-long term auction.
