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BTP leads Govies lower

BONDS
  • BTP is pushing lower, keeping the lid on Germany and EGBs.
  • The next big upside Yield level is at 4.928%, the October high and the highest print since February 2013.

Today reference 109.37:

  • 4.928% = 108.32.
  • 4.950% = 108.14.
  • 5.000% = 107.71.

With the push lower in Bonds, with BTP leading, also helped ahead of heavy supply and Italy delaying its debt reduction date, the BTP/Bund spread spikes through 195.00bps, and besides the Psychological 200bps handle, resistance is at 202.32bps, the 50% retrace of the October/June fall.

Chart source: MNI/Bloomberg.

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