The spread between Italian BTPs and German Bunds remained stable in the first minutes of the opening on 23 June, maintaining the 72 basis points with which it opened the week. Yields fell slightly, to 3.66%, losing two hundredths of a point compared to yesterday’s opening.
The last government bond auctions of the month will begin tomorrow, June 24, with the one that will lead to the issuance of Short Term BTPs and BTP€i. The auction of Bots and that of medium and long-term securities will follow in the following days.
Spread stable, yields drop
The first minutes of the opening of the financial markets on June 23rd brought a slight decline in the yields of both Italian and German government bonds. The 10-year benchmark BTPs recorded a contraction of two hundredths of a point, reaching 3.66%, while the German equivalents went from 2.96% to 2.94%. As a result, the spread remained unchanged, remaining at 72 basis points.
Yields have started to fall again after yesterday’s rise, thanks above all to the progress of negotiations between Iran and the USA in Switzerland. After the Strait of Hormuz was closed by Iran over the weekend, the two delegations returned to discussing how to resolve the stalemate and bring energy markets back to normal. As regards European government bonds, however, the situation is still far from the pre-war one, when the spread between BTPs and Bunds was just above 60 basis points.
European spreads still stable
The wait for the developments of the talks in Switzerland also kept the other European spreads stable. The Spanish Bonos stabilized at a score of 47 basis points, higher than the average of the last period, with yields above 3.40%. French Oats maintained a spread of 65 basis points, with coupons of 3.59%.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 2.94% | – |
| Italian BTPs | 3.66% | 72 |
| French Oats | 3.59% | 65 |
| Spanish bonos | 3.41% | 47 |
Yesterday, ECB President Christine Lagarde reassured the European Parliament, declaring that, despite the impact of the energy crisis caused by the war in the Middle East, Frankfurt should not intervene further on interest rates in the near future.
The next BTP and BOT auctions
The last auctions of government bonds of the month will begin tomorrow, June 24th. We will start with short-term securities and Btp€i, and then continue with BOTs and the long-term auction.
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.
