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10Y Yields Test Post-May Highs

BTP

10Y BTP yields briefly pushed through last Friday's intraday high to touch a fresh post-May high of 4.419% before retreating by around 1bp.

  • Up around 3bp on the day, 10Y BTP weakness has been largely driven by the leg lower in global bonds (the test of recent highs came as spreads vs Bunds were fairly steady, only up 1.5bp).
  • The next 10Y BTP yield level to watch beyond this area is the May 26 high of 4.451% - above that lies early March (pre-US banking turmoil) levels.

Source: BBG

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