Seasonality factors suggest a small window for the 10-year Italian BTP-German Bund yield spread to widen in July followed by a tightening, Morgan Stanley rates strategists say in a note. "Our framework points to a short widening in 10-year BTP-Bund [yield spread] at the start of the month (the median is approximately 4 basis points) followed by a tightening phase lasting into mid-September, with a median move of around approximately 8bp," they say. The 10-year BTP-Bund yield spread is currently 78 basis points, according to Tradeweb. (emese.bartha@wsj.com)
Dow Jones Newswires
Italian-German 10-Year Bond Yield Spread Has Scope for Short-Dated Widening, Then Tightening — Market Talk
- Sources
- Dow Jones Newswires
- Markets
- Bonds
- Language
- English
Seasonality factors suggest a small window for the 10-year Italian BTP-German Bund yield spread to widen in July followed by a tightening, Morgan Stanley rates strategists say in a note. "Our framework points to a short widening in 10-year BTP-Bund [yield spread] at the start of the month (the medi…