Danske Bank: Italian government bonds expected to continue strong performance.

Danish bank analysts stated in a report that since 2025, Italy has consistently outperformed in the Eurozone government bond market. "Given its potential for further credit rating upgrades, as well as being included in more benchmark indexes and repurchase agreements, it is expected that Italy's performance will continue to outperform the core countries of the EU," these analysts said. According to data from the London Stock Exchange Group, the yield spread between 10-year Italian BTPs and German government bonds has narrowed from 116 basis points at the beginning of the year to a multi-year low, slightly above 70 basis points.