Goldman Sachs strategists have revised up their estimates on the BTP -Bund spread, pointing it to 250 basis points at the end of the year compared to the 200bps previously indicated. The growing political uncertainty and the potential loss of political continuity are weighing. “We believe there is a major obstacle for the ECB to activate support through its newly announced TPI – asserts the US investment bank – and this suggests that the ECB’s determination to normalize policy settings could be tested by markets “. As for the Bund, Goldman Sachs estimates a yield in the area of 2% at the end of the year.
Btp-Bund Spread: Goldman Sachs raises year-end target due to political uncertainty
135