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BTP/Bund tightening

BONDS
  • Decent buying clips goes through in BTP,, after Italy skips conventional debt sale, pushing the BTP/Bund spread 2.5bps tighter..
  • BTP/Bund spread now targets the September low (Tightest) at 98.51, which is also the tightest level since April.
  • Desk have favoured fading move around the 100bps area.
  • Regardless, further out, see the Feb low at 90.4048, also the tightest level March 2015

Chart source: Bloomberg

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