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A quick BTP update. Clearly a market...........>

BTPS
BTPS: A quick BTP update. Clearly a market suffering from the risk-off trade
today and the spread to Germany is back to 176.4bp, a widening of 5.8bp today.
- At 08:48 BST, the spread widened 1bp in response to a block trade that looked
like a BTP sale: 2,787 IKU7 @ 136.67 vs 2,263 RXU7 @ 165.40
- Tomorrow, Italy sells up to E7.25bln in the form of 7Y CCTs and 5Y and 10Y
BTPs.
- Hearing of some fast money selling in Italy and weakness is particularly
notable the 15-25Y sector of BTPs, with the BTP 2.45% Sep-33 is subject to
particular weakness.
- Index extensions are modest this month. The EGB Bloomberg-Barclays index rises
just 0.03 years.

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