10-year BTP rate breaks through the wall 4%, yield at the top since January 2014

The surge in bond yields globally, coupled with last week’s lack of clarity from the ECB on how it will manage spread increases, has led the 10-year BTP hitting the 4% yield threshold for the first time. since January 2014.

Italy’s 10-year yield has increased by 24 basis points today, reaching 4.005%, with a BTP / Bund spread in the 240bps area.

Futures now indicate the probability of 171 basis points of ECB rate hikes by the end of the year compared to 140 basis points before the last meeting last Thursday.