BTP-Bund spread: for SG it can drop again. That's until when

The differential between the Italian ten-year and the German one settled at 141.6 basis points, with an increase of 0.28%, a short distance from the intraday highs reached at 142.3 basis points.

The BTP-Bund spread did not record any significant changes, with investors who preferred not to say too much in anticipation of the S&P verdict that in the evening will announce its decision on Italy's rating, currently equal to "BBB".

Meanwhile, good news comes from the analysts of Societe Generale who see further declines in the BTP-Bund spread.
For the experts, the differential between the Italian ten-year and the German one, with a probability of 70%, should stabilize or fall further until the third quarter of next year.

According to analysts, at current spread levels investors are adequately compensated for risk-taking.

It should also be noted that Societe Generale sees no tension on the 2020 budget law and therefore does not expect tensions that could negatively affect the BTP-Bund spread.