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BTP/Bund widest since September 2020

BONDS
  • Some unwind in the curve, as noted on the cash open, 5s/30s tested flattest level since March 2020, and now lean steeper.
  • BTP underperforms ahead of the ECB meeting and the contract eye support at the January double bottom at 144.54/144.55.
  • Price action in the BTP is pushing the BTP/Bund spread 2.3bps wider and widest since September 2020.
  • The spread is testing the psychological 140bps level.
  • Further continuation will target 150bps.

Chart source: Bloomberg

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