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BTP Spreads Widening As Hawkish ECB Commentary Eyed

EGBS

BTP spreads widening alongside a tick higher in ECB terminal rate pricing today (Muller's comments this morning warning against prematurely stopping tightening relevant here) - now seen 2.93% in Jul or Sep 2023, up 4bp.

  • 10Y BTP yields up 20+bp, with spread over Bund up 7.4bp, more than reversing Thursday's tightening.

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