Citigroup: There is still room for the yield spread between Italian and German 10-year government bonds to widen

On August 9th, Citi interest rate strategist Aman Bansal stated in a report that from the perspective of Italy’s fundamentals, the yield spread between Italian and German government bonds looks too narrow, so there is still room for expansion. He mentioned in the report that the supply is expected to increase significantly in September, and the spread may widen before decreasing in the fourth quarter. He said, “Overall, the risk seems to be tilted towards further expansion before the spread narrows, and the yield spread on 10-year government bonds may be in the range of 145-160 basis points.”