Goldman sees spreads at 235 bps at the end of the year: short BTPs vs Bonos

MEF issues new BTP Green for an amount of 10

(Tiper Stock Exchange) – Goldman Sachs predicts that 10-year BTP-Bund spread may arrive to 235 basis points at the end of the year, compared to around 185 basis points today. This can be read in a report, dated 21 April, which recalls that the ECB’s policy will continue to tighten with the intention of slowing down demand and underlines that attention will increase on Italy’s implementation of the Recovery Fund . The latter aspect “could begin to weigh on growth expectations at a national level”.

The US investment bank analysts’ recommendation is “go short“, i.e. betting low, on 10-year BTPs compared to Bonos (Spanish bonds) “as we head towards an acceleration of the ECB’s Quantitative Tightening from June”.

“We believe this property [..] could benefit from outperformance of Spainthanks to improved growth prospects, as well as solid progress towards funding targets,” it underlines.

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