The spread between Italian Bonds and German Bonds has led to the widening of spreads in the Eurozone this year.

Barclays Analysts Max Kitson and Pratham Hukmat Kingar stated in a report that the spread of Eurozone government Bond yields has widened this year, mainly driven by the spread between Italian Bonds and German Bonds, followed by the spread between French Bonds and German Bonds. The tightening of the spread between Italian Bonds and German Bonds is partially driven by the decisions of rating agencies: S&P Global upgraded Italy's rating in April, while Moody's gave the country a positive outlook in May. These strategy Analysts stated that, regarding French Bonds and German Bonds, there have been no new negative political/financial news (following last year's turmoil), which has reassured investors to increase arbitrage transactions in French Bonds. These strategy Analysts stated, “More broadly, the tightening of sovereign Bonds spreads is supported by investors' preliminary optimism regarding the long-term economic outlook for the Eurozone.”