After adjusting the direction of interest spreads between the two countries, French 10-year treasury bonds appeared “cheap” compared to Italian treasury bonds for the same period. According to the regression analysis of the three-month fixed term yield, the yield on French 10-year treasury bonds is about 5.1 basis points higher than the yield on Italian 10-year treasury bonds after beta adjustment. This spread has reached 2.2 standard deviations, indicating that the current level of interest spreads on 10-year French and Italian treasury bonds has clearly deviated from normal statistically, which may indicate that there is a trading opportunity for interest spreads to return to the average.

After adjusting the direction of interest spreads between the two countries, French 10-year treasury bonds appeared “cheap” compared to Italian treasury bonds for the same period. According to the regression analysis of the three-month fixed term yield, the yield on French 10-year treasury bonds is about 5.1 basis points higher than the yield on Italian 10-year treasury bonds after beta adjustment. This spread has reached 2.2 standard deviations, indicating that the current level of interest spreads on 10-year French and Italian treasury bonds has clearly deviated from normal statistically, which may indicate that there is a trading opportunity for interest spreads to return to the average.