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Greece vs Germany

BUNDS
  • Greek/Bund now 13.5bps wider on the session, but unclear on a specific driver, Italy (BTP) trading close to inline with Bund (just 1.4bp wider).
  • As noted earlier, possibility of technical play ahead and above 3% for Greece, with the yield extending higher and printing another high at 3.103% right now.
  • Expected forthcoming Greek supply may also be at play.
  • The Greek Bund spread is widest since 28th Mach, with next upside (widest) target seen at 223.69.

Chart source: MNI/Bloomberg

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