At the opening of 29 June 2026, the spread between Italian BTPs and German Bunds remained stable, remaining at 75 basis points. However, the dynamics of yields has changed: after days of parallel declines between Berlin and Rome bonds, the reduction in interest stopped and reversed course, with a simultaneous increase in both products, albeit limited.
The end-of-month auctions also concluded last week, bringing 13.5 billion euros to the state coffers between Bot, BTP and CctEu. The yields for the various securities did not much exceed 3%.
The spread continues to increase, but the yields change
The trend of the spread stopped the trajectory of the end of last week even in the very first hours of June 29th. The spread between BTPs and Bunds remained stable at 75 basis points, now far from the recent lows of 70 points. This slowdown, however, is determined by a change in the way bond yields are behaving.
In the last few days, up until Friday 26th, both the yields on Bunds and those on 10-year BTPs had decreased. The spread, however, increased, because the rate of decrease in the coupons of German bonds was faster than those of Italian bonds. As a result, the differential widened day by day.
As of this week, however, yields have stopped falling. Both those of the Bund and those of the BTP have grown, contributing to the stability of the spread. German bonds reached 2.86%, Italian ones at 3.61%.
The other European spreads were also stable
The other European spreads also remained substantially stable. Spanish Bonos continue to struggle compared to the recent past, with a spread of almost 50 points and yields of around 3.35%. The instability of the Sanchez government, hit by several scandals and rather unpopular despite the country’s positive economic results, does not help.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 2.86% | – |
| Italian BTPs | 3.61% | 75 |
| French Oats | 3.54% | 68 |
| Spanish bonos | 3.35% | 49 |
Slight increase for the French spread, which went from 67 to 68 basis points. OAT yields reached 3.54%.
Yields of 13.5 billion euros from the BOT and BTP auctions
The end-of-month auctions of government bonds concluded on Friday 26th, with a collection of 13.5 billion between BOTs and BTPs in the last two issues. As regards the long term, the returns were:
- BTPs expiring in February 2036, 3.58%;
- Btp maturing in June 2031, 3.03%;
- Btp maturing in July 2036, 3.63%;
- CctEu expiring April 15, 2036, 3.25%.
The auctions will then return in July, on these dates:
- July 9th Bot auction;
- 10 July auction of medium and long-term bonds;
- 28 July auction of Short Term BTPs and BTP€i;
- July 29th Bot auction;
- July 30 auction of medium and long-term bonds.
