The spread between Italian BTPs and German Bunds remained stable at around 76 basis points at the opening on 6 July, in line with the latest results of last week. After some fluctuations, the differential stabilized and yields stopped just below 3.70%.
In the last days of this week, the traditional auctions of government bonds will be held, with BOTs and medium-long term bonds that will be made available to the market.
Stable spread and high returns
The spread between Italian BTPs and German Bunds has resumed where it left off last Friday. The differential remained at 76 points, close to the level that had characterized a short period of stability, before last week brought important fluctuations of almost 10 points in a few days.
It is not only the spread that remains stable, but also the returns. Italian 10-year benchmark bonds remained at 3.68% interest for those who decide to lend money to the State. This is the same level as last week. Likewise, German Bunds also remained at 2.92%, a few cents above the 2.89% that had characterized Berlin bonds during a period of stability in recent weeks.
Movement in European government bond markets
Italy and Germany buck the trend regarding the performance of their government bonds compared to the other major European countries. In Spain, the Bonos saw their yields increase above 3.40%, bringing the spread to almost 50 basis points, a threshold that the Madrid bonds exceeded only in the most critical moments of the war in the Middle East in 2026.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 2.92% | – |
| Italian BTPs | 3.68% | 76 |
| French Oats | 3.61% | 69 |
| Spanish bonos | 3.40% | 48 |
French stocks also touched a psychological threshold. The Oats have in fact moved a few tenths of a point below the 70 point spread, getting very close to the BTPs and moving away from the Bunds. French yields are over 3.60%.
BTP and BOT auctions begin again
In the next few days the Ministry of Economy and Finance will publish the press releases for the auctions of BOTs and medium and long-term securities which will be held by the end of this week. These are the traditional issues at the beginning of the month, which will make short and long-term securities available to the market.
The dates to note for the auctions are:
- 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.
