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Citi Note Potential For Further GGB Tightening Post-Lections, Don’t See EUR Impact

CROSS ASSET

Ahead of the second round of Greek elections (Sunday) Citi point to the broad-based expectations as polls suggest “an absolute majority for the incumbent centre-right New Democracy.”

  • They go on to note that their “rates strategists flag that (ND) outperformance could drive another round of tightening for 10-Year GGB/Bund by around 10bp as an upgrade to IG would appear closer. Expect limited relevance for EUR FX, but the move in peripheries could dominate EUR FI at the start of the week.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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