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BTP/Bund makes an attempt at 240.00bps

BONDS
  • BTP/Bund spread is now approaching that 240.48bps, the June and 2022 high, and widest level since 07/05/20.
  • RECALL: Bank of Italy Governor Visco recently noted that the spread "is much higher than what would be justified by the macro fundamentals... that has to do with the uncertainty that the market sees in terms of policy."
  • And also, Visco previously suggested (in mid-June) that "a differential in the yields of 10-year Italian and German bonds of less than 150 basis points would be justified by the fundamentals. Levels above 200 points are certainly not."

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