Gold bars to be exempt from tariffs, White House clarifies
Investing.com -- Eurozone government bond yield spreads have shown resilience amid recent geopolitical tensions and are projected to narrow further in the coming months, according to Citi’s rates strategists.
"While risks remain into the upcoming tariff deadline on 9 July, we are constructive and expect most EGB spreads to tighten versus Bunds into the year-end," Citi strategists wrote in a note.
The bank forecasts that the 10-year Spanish-German yield spread will tighten to 50 basis points from its current level of 64 basis points. Similarly, the 10-year Italian BTP-German Bund yield spread is expected to narrow to 75 basis points from 89 basis points.
Citi strategists noted that this outlook is supported by "the front-loaded German fiscal stimulus announced last week."
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