The spread between Italian BTPs and German Bunds narrowed further at the start of May 14, reaching 75 basis points, the same level at which it began the week. However, yields remained higher, with the benchmark 10-year BTPs, on which the differential is calculated, remaining at 3.84%.
The auctions of medium and long-term BTPs concluded yesterday, with good results for the Treasury. The State has collected another 7.5 billion euros, which are added to the 10 billion obtained from the issue of the Bots on 12 May. Returns hovered between 3% and 4%.
Btp-Bund spread down to 75 basis points
When the markets opened on May 14, 2026, the spread between Italian BTPs and German Bunds stood at around 75 basis points, returning to the results of the beginning of the week. After Tuesday’s peak, caused, as has often happened recently, by developments in the war in Iran and doubts about the stability of the ceasefire, the differential began to decline again.
However, the yields on government bonds have not fallen, neither on German ones, nor particularly on Italian ones. In fact, if the 10-year benchmark BTPs had opened the week at a coupon of 3.77%, they now stand at 3.83%, with the German equivalents at 3.08%.
This week’s instability has therefore left six cents of residual on yields, partially reflected in the first auctions in May, which had suboptimal demand for several products.
European spreads falling, to their lowest since the start of the war
The opening on May 14 was also positive for the government bonds of other large European countries. Spanish Bonos moved to 41 basis points from Bunds, with a yield of 3.49%, aligning, at least as regards the spread, with the long period of stability that preceded the start of 2026.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 3.08% | – |
| Italian BTPs | 3.83% | 75 |
| French Oats | 3.70% | 62 |
| Spanish Bonos | 3.49% | 41 |
Similarly, French OATs also further reduced their distance from their German equivalents, bringing the spread to 62 basis points with a yield of 3.70%.
The results of the first May auctions of government bonds
The auctions of medium and long-term BTPs ended yesterday, closing the first phase of government bond issues in May. The State has collected 17.5 billion euros between BOTs and BTPs.
| Government bonds | Isin code | Amount (€) | Yield | Expiration | Coverage ratio |
|---|---|---|---|---|---|
| Bots at 12 months | IT0005709289 | 8,500,000 | 2.70% | May 14, 2027 | 1.45 |
| Bots at 12 months | IT0005660029 | 1,500,000 | 2.11% | July 14, 2026 | 1.75 |
| 3 year BTP | IT0005689960 | 3 billion | 2.98% | March 15, 2029 | 1.53 |
| 7 year BTP | IT0005704868 | 3.25 billion | 3.55% | June 15, 2033 | 1.54 |
| BTP at 20 years | IT0005321325 | 1.25 billion | 4.04% | September 1, 2038 | 1.77 |
The dates to note for the auctions of Italian government bonds are:
- 26 May, Short Term BTP auction;
- May 27, Bot auction;
- May 28, auction of medium-long term BTPs.
