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2/10s unwinds

BTPS
Some unwind in the Italian curve, following the bear steepening in the like of Germany, UK and Italian curves.
  • Italy 2/10s traded at 1 month high 111.393, steepest since 21/09.
  • But we have faded in the last 2 hours, with the longer end recovering some of its earlier losses.
  • Volumes remains subdued, but once again, we are having more volumes in German 2yr (DUZ0), trading more than Bobl.,
  • Some pointing at swap spread compression as a possible reason.

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