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BTP/Bund spread lowest since May 2022.

BONDS
  • BTP still leads higher in EGBs, with the initial early price action led by US Treasuries with desks positioning ahead of the US Data.
  • The contract tested through the resistance of 118.49 earlier, was last Friday's high, and printed a 118.61 high so far today.
  • Next area of interest will be towards the 119.00, but immediate focus remains squarely on the BTP/Bund, over 3bps tighter and through the December low, which is also the lowest print since May 2022.
  • Some might look at the 150.00bps Psychological level next, but better is seen further out, down to 145.84bps, the March 2022 low.

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