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BTP/Bund spread unwinds the Tightening bias

BONDS
  • BTP block and a round of selling, with intraday long bailing out, helps the Italian 10yr to catch up with Bund.
  • BTP/Bund spread is back at flat after being over 3bps tighter earlier.
  • Support in Bund is still eyed at 134.87 initially.

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