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BTP/Bund spread tightest since may 2018

BTPS

ITALY/Bund is through the tightest level seen since 12/02/2020 at 128.8221, now at 128.1.

  • You now have to go back to 07/05/2018 level, when 122.2557 low was printed
  • BTP are outperforming once again, as Italian political risk diminish, since that 20-21st September Italian vote.
  • EU fiscal support has also provided some positive impetus for the likes of Italy.
  • Worth also keeping an eye on the outright contract, and the record low yield at 0.751%, which would equate today (ref 148.74) to 148.96.
  • BTP is now 148.77

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