The Italian bond market opens slightly positive, with the spread falling below 200 basis points, despite the renewed internal political tensions, related to the government's difficulties and the possible changeover between Enrico Letta and Matteo Renzi at Palazzo Chigi.
Around 10 am, the yield differential between Italian and German ten-year yields stood at 30 basis points, after an opening at 198,9 basis points, down from 200 at the last closing. Yesterday the spread was back, albeit briefly, below 202, as already happened in the first part of January.
The rate on ten-year Italian securities stands at around 3,69%, from 3,70% at the last closing. In recent days, the rate has repeatedly touched 3,68%, the lowest since the beginning of 2006.
The mid-month round of Italian auctions opens today, with the offer of 8 billion 12-month BOTs: on the Tradeweb gray market, the voucher trades at a yield of 0,713%, a marginal decrease compared to the 0,735% of the January auction.
Germany will also be active on the primary market in the morning, launching the new Schatz in March 2016, with an offer of 5 billion euro.
