Positive opening for the spread between Italian BTPs and German Bunds, which in the first minutes of June 22nd decreased compared to Friday’s close, reaching 72 basis points. However, the yields of both Italian and German bonds are continuing to grow, albeit slowly.
The issuance of Btp Italia Sì also concluded on Friday and recorded a very high take-up, comparable to that of similar securities issued in recent years. The Treasury has raised almost 9 billion euros with more than 200 thousand contracts.
Spreads falling but yields rising
The relative stability of the spread between Italian BTPs and German Bunds continues, just above 70 basis points. The opening of the week was positive, down to 72 points, but still within the range shown in recent days. The situation of the differential has remained stable since Iran and the USA first announced and then signed the memorandum of understanding on which the talks in recent days are developing.
Talks that remain threatened by constant instability, in particular due to the Israeli attacks in southern Lebanon and Donald Trump’s statements, which yesterday caused the Iranian delegation to temporarily withdraw from the consultations. The Strait of Hormuz, in the meantime, was closed again, and this was reflected in a slight increase in yields, which reached 3.68% for BTPs and 3.96% for Bunds.
The other European spreads also fell slightly
However, the spread between Bonos and Bunds remains high. Spanish bonds suffered a spike in yields at the end of last week, which they have not yet managed to overcome. The main cause is political instability, with the main party that makes up the majority supporting the Sánchez Government, the Socialists, involved in numerous scandals.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 2.96% | – |
| Italian BTPs | 3.68% | 72 |
| French Oats | 3.61% | 65 |
| Spanish bonos | 3.43% | 45 |
The spread therefore remained at 47 points, while that of the French Oat fell slightly, reaching 65. The yields on Paris bonds increased by only one hundredth of a point, to 3.61%.
Issuance of Italian BTPs concluded Yes, regular auctions are back
The Btp Italia Sì concluded their issue last week with a success. The Treasury has collected 8.8 billion euros, with a minimum guaranteed return of 1.60% to which indexation to the inflation rate must be added. Starting this week, regular auctions will return. The details for that of Short Term Btp and Btp€i have already been communicated, those of Bots and medium and long term securities will follow.
The auction dates will be:
- Wednesday 24 June, auction of Short Term BTPs and BTP€i;
- Thursday 25 June, Bot auction;
- Friday 26 June, medium-long term auction.
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