Yet another black smoke in the votes for the President of the Republic. Elisabetta Casellati, a candidate indicated by the center-right, failed to bring the quorum of 505 votes closer, stopping at 382 preferences. Casellati did not even reach 400 votes, a threshold set by the coalition to propose it again in the afternoon vote, scheduled for 5 pm.
On the markets, the spread remains close to 140 basis points, slightly higher than the previous day. The yield of the Italian ten-year period is around 1.4%. Regardless of the match for the Quirinale, according to the strategists of Societe Generale, the BTP / Bund spread will widen in the course of 2022, reaching 170 basis points thanks to the normalization of monetary policy by the ECB.
Meanwhile, today the BTP auction showed rising yields for the 5 and 10-year bonds. In detail, € 3 billion of 5-year BTPs (range 2.5-3 billion) were placed with demand exceeding 4.6 billion. The 5-year BTP expiring in August 2026 was allocated to a yield of 0.50%, up by 31 basis points compared to the November auction. The 10-year BTP yield (maturity June 2032) also increased from 1.03% to 1.39%.