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BTP leads EGBs

BONDS
  • Bund has closed the gap, in what has been more of a gradual move, and the contract finds some offer, in a low volume traded early session.
  • Resistance is still at the 132.88, did print a 132.92 high so far today.
  • A break above the 133.00 figure, will open back to 133.34 (Friday's high) initially.
  • Italian BTP has led some of the small pullback, bringing the BTP/Bund spread 1.8bps tighter, and the July low at 158.72bps back in sight.
  • Some desks will look at 116.32 for resistance in BTP.

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