BTP: The contract has now gained very close....>

BTPS: BTP: The contract has now gained very close to 10% (9.95%) since 31/05. 10

yr CDS are back to levels last seen in 2018 There's been few desk scratching

their heads since the Data hasn't really been on the positive side.

Despite no real clear fundamentals, the main reasons for the big rally and in

turn Yields returning to record low, have been:

-Political: Investors have ignored the bad data and have been more focused on EU

relations. EU not taking step against Italy debt/deficit sanctions.

-ECB potential Policies: Expectations of more QE with wider issuer limits, have

favoured Yield grab.

RISKS: It is worth noting that Italy is 1 notch above Junk.

Next Sovereign Rating for Italy 

Fitch: 09/08/19 

Moody: 06/09/19 

S&P: 25/10/19