At the opening on April 15, the value of the spread between Italian BTPs and German Bunds fell slightly to 75 basis points. A result obtained despite the tensions between the United States and Italy, in particular between Prime Minister Giorgia Meloni and US President Donald Trump, who harshly attacked the prime minister for Italy’s lack of support for US operations in Iran.
Italy has followed other European countries in a progressive reduction in yields, which originates in the hope of new peace talks in the Middle East between the USA and Iran and in the European Union’s reaction to the energy crisis.
Spread down to 75 basis points
The spread between Italian BTPs and German Bunds narrowed further in the first minutes after the markets opened on 15 April 2026 compared to yesterday’s decline. The differential reached 75 basis points, one less than on April 14th and very far from the 80 point threshold above which it closed last week.
The reduction in the spread is the result of a faster decline in the yields of 10-year benchmark BTPs compared to those of their German equivalents. The BTP yield fell from 3.80% yesterday to 3.75%, with a reduction of 5 hundredths of a point. In comparison, Bund yields decreased by 4 cents, thus leading to a decline in the spread.
Bond markets continue to believe in the possibility of a ceasefire in the Middle East. After the failure of talks between Iran and the US over the weekend, a diplomatic glimmer of hope has reopened and Donald Trump has declared that the conflict could “end soon”. At the same time, as far as Italy is concerned, there were no particular turbulences due to the clash between Trump himself and Giorgia Meloni regarding the US president’s statements on Pope Leo XIV.
Yields are falling at European level
Spain and France followed the same trajectory as Italy, with a reduction in the yields of Bonos and Oat effectively paralleling that of Bunds. The Spanish spread therefore remained stable at 44 basis points, while the French one fell slightly to 63 basis points.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 3.00% | – |
| Italian BTPs | 3.75% | 75 |
| French Oats | 3.63% | 63 |
| Spanish bonos | 3.44% | 44 |
The European Union’s reassurances regarding the energy crisis are also having an effect. By April 21st the Commission should intervene with measures to protect businesses and families from price increases.
The April BTP and BOT auctions
After the good results of those at the beginning of the month, the April auctions of Italian government bonds will continue. In the next round of issues, both soon-to-maturity products, such as short-term BTPs and BOTs, and medium and long-term BTPs will be made available. The dates in detail will be:
- the BTP Short auction on 24 April;
- the Bots auction on April 28th;
- the auction of medium and long-term BTPs will take place on 29 April.
However, the BTP€i auctions scheduled for 24 April have been cancelled, as the Mef has given a mandate for the dual tranche issue of a new 10-year benchmark with maturity on 1 July 2036 and a new 20-year BTP€ia with maturity on 15 February 2046.
