Italian bond market: BTP spread steady, new 6‑month BOT auction

On 24 June 2026 the spread between Italy’s 10‑year BTP and Germany’s Bund held at 72 basis points, while the BTP yield fell to 3.58% from 3.64%, indicating a calm market for sovereign debt without new risk premiums.

The Treasury announced a €6 billion 6‑month BOT issuance on 30 June, with an additional €600 million extra tranche in a supplementary auction. The bond is expected to price around 98.80 cents, delivering a yield close to 2.40%, comparable to recent secondary‑market levels and slightly above the rates offered by bank time‑deposit products. The offering comes as geopolitical tensions ease after U.S.–Iran negotiations and the European Central Bank has begun raising rates amid high inflation, though expectations point to stabilising inflation and rates later in the year.