Morning on the swing for the Italian spread. After open at 357 basis points, the yield differential between ten-year BTPs and the corresponding German buns gradually collapsed, until it reached the daily minimum of 350 bps. Barely an hour into trading, however, the trend reversed sharply: the spread thus started to rise again until it exceeded the opening level and once again broke through the 360-point wall, to settle in the middle of the day at an altitude of 365.
Very similar trend also for the sui differential Spanish bonuses, which however, despite having undergone a much greater increase during the morning, remains well below the Italian one. After an opening at 302 bps, the Madrid spread fell below the 300 mark, to 297 bps, before suddenly shooting up to reach 317 basis points.
