More USD issuance from Italy expected next year

It has been a day devoid of a lot of major market moving headlines and Bunds have therefore just followed general market risk sentiment while peripheral spreads are largely unchanged on the day. Bunds started the day on the front foot but have slowly edged lower through the day.

• Perhaps the most interesting comment of the session was from Iacovoni that private placements of Italian debt in foreign currency were a possibility for next year. He also said that Italy aims to issue at least one USD-denominated bond in 2021. Note that he said last week that issuing in dollars was 15-20bp cheaper than issuing in euros.
• Bund futures are down -0.09 today at 175.09 with 10y Bund yields up 0.6bp at -0.557% and Schatz yields down -0.2bp at -0.735%.
• BTP futures are down -0.14 today at 150.81 with 10y yields up 0.9bp at 0.646% and 2y yields unch at -0.390%.
• OAT futures are down -0.09 today at 169.80 with 10y yields up 0.8bp at -0.325% and 2y yields down -0.1bp at -0.683%.