Slight decline in the yields of Italian government bonds, although the spread between BTPs and German Bunds remained stable at 78 basis points between the close of Friday 7th and the opening of Monday 10th August. A trend always linked to the war in the Middle East, especially in the Strait of Hormuz, which despite the announcements of an imminent agreement between Oman and Iran is still substantially closed.
Today the Treasury will issue communications for medium and long-term government bonds, revealing the coupons of the products it will auction in this first week of issues in August.
The spread and yields of August 10, 2026
In the first minutes of the opening of the financial markets, the spread between Italian BTPs and German Bunds remained essentially stable at 78 basis points. This is a comforting sign for the Treasury, given that the benchmark 10-year bonds had undergone strong changes in the last week.
This new stability, however, seems to depend above all on the stalemate in the war in the Middle East, with Iran and Oman for days on the verge of signing an agreement for the Strait of Hormuz, which however remains closed. The summer recess of Parliament, which prevents internal political movements, also contributes to the stalemate in the spread.
Yields are slowly falling
Over the weekend, the yields on Italian government bonds fell very slowly, by just one hundredth of a point, going from 3.93% on Friday the 7th to 3.92% on Monday the 10th. Similarly, German bonds, the Bunds, lost one hundredth of a point, reaching a yield of 3.14%.
How the spreads of other European countries are performing
The other large European countries showed a variation, albeit minimal, in their differentials. The spread between Spanish Bonos and Bunds fell by one point, from 44 to 43 basis points, with yields of 3.57%.
| Government bonds | Returns | Spreads |
|---|---|---|
| German Bunds | 3.14% | – |
| Italian BTPs | 3.92% | 78 |
| French Oats | 3.93% | 79 |
| Spanish bonos | 3.57% | 43 |
Similarly, French Oats managed to return below 80 basis points, reaching 79 points with an average yield of 3.93%.
The week of the first August auctions begins
Today the communication for the auction of medium and long-term government bonds on 13 August will be released, the last before the first auctions of the month, which will be held on Wednesday and Thursday. 8 billion euros in BOTs have already been announced, the returns of which will only be known following the issue.
The dates of all the auctions of the month are:
- August 12, Bot auction;
- 13 August, auction of medium and long-term bonds;
- 26 August, auction of Short Term BTPs and BTP€i;
- August 27, Bot auction;
- August 28, auction of medium and long-term bonds.
