BTPs: Tensions between Italia and France ease, spread falls to 105 points

(Il Sole 24 Ore Radiocor) - Tension surrounding Italian and French government bonds on the bond market eased around the middle of the trading session. The yield spread between the benchmark 10-year BTp and the Bund, which had opened trading at 113 basis points – down from 115 yesterday – hit a low of 105 points and has now risen slightly to 106, its lowest level since the start of the month, having even reached 130 in recent days. The yield on the benchmark 10-year Italian bond stands at 4.52 per cent, a full 12 basis points below yesterday’s closing level of 4.64 per cent.

The same trend is evident for the French 10-year OAT, whose spread is now falling sharply to 130 basis points, down from 139 at the open, with a yield of 4.76 per cent (last night it stood at 4.86 per cent).

Mlp