Piazza Affari rebounds after Trump's remarks on Iran, spread below 110 points

European stock markets opened Friday’s session with a sharp rise, after US President Donald Trump’s announcement that the United States will not attack Iran before the midterm elections. Eurostoxx 600 futures were up 0.7%.

In Milan, the opening brought the FTSE Mib up 0.8%, to 49,700 points, with the spread between Btp and Bund falling to 109 points. The movement strengthened during the morning: at 11:45 the Milan index was up 1%, at 49,792 points, with the spread narrowing further to 105 points and the yield on the ten-year Btp falling to 4.55%.

The climate of easing on the markets was also reflected in other assets: bitcoin returned above $82,500, while gold fell to $4,210 an ounce and oil slipped below $90.5 a barrel, in line with an easing of geopolitical tensions as perceived by traders.

On the Italian public debt front, the Treasury placed annual BoT bonds worth 8 billion euros at auction. The yield rose to 3.175%, returning to the highest levels since 2024: a sign that the cost of short-term financing for the Italian state remains high, even on the same day that the spread on the ten-year bond is narrowing. The data on the auction currently comes from a single source; no further independent confirmation is available at this time.

The combination of a falling spread on the ten-year bond and a rising yield on annual BoT bonds describes two different dynamics: the first reflects the perception of medium-term sovereign risk, the second the immediate cost at which the Treasury finances itself in the very short term.