BTP: spread closes higher at 87 points, yield jumps to its highest level since 2023 following the ECB’s decision

A 15-year record for the Bund, and a 10-year record for the French OAT

(Il Sole 24 Ore Radiocor) - The spread between BTp and Bund closed significantly higher at the end of a day characterised by sharp movements and a general surge in eurozone yields in the wake of the ECB’s decisions. At the close of trading, the yield spread between the benchmark 10-year BTp and the German Bund of the same maturity stood at 87 basis points, up from 84 basis points at yesterday’s close. The rise in the yield on the benchmark 10-year BTp was even more pronounced, closing at 4.37 per cent, up from 4.28 per cent previously, reaching its highest level since November 2023. Yields were driven higher during the afternoon by the ECB’s decision to raise interest rates by 25 basis points to combat inflation, without providing a timeline for future moves, combined with anticipation of US consumer price data.

Record yields were also seen for other eurozone government bonds, with the Bund reaching the 3.5 per cent mark

reaching 15-year highs, just shy of the peak recorded in the summer of 2009. Meanwhile, 10-year French OATs are at their highest level since 2008, yielding 4.42 per cent on the secondary market.

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