BTP Spreads Testing 200bp Mark On Fading ECB Tightening Fears

Periphery EGBs have benefited from the pullback in ECB tightening expectations in the wake of poor US data.

• 10Y BTP spreads briefly fell to the tightest levels since the Dec ECB meeting, at 197.6bp and are now flirting with the 200bp mark below which they haven't closed since Dec 14.
• Spanish and Portuguese spreads are tighter on the session; Greek spreads are a little wider - all have narrowed sharply from wides set earlier this afternoon, however.
• Italian BTP spread down 1.6bps at 200.2bps
• Spanish bond spread down 0.4bps at 105.4bps
• Portuguese PGB spread down 0.2bps at 99.6bps
• Greek bond spread up 2.1bps at 216bps