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Commerzbank Flag Potential For Further BTP Tightening

EGBS

Commerzbank suggest that “BTP tightening still has scope to continue near term. As even the disastrous budget deficit figures interrupted the spread tightening only for one day, a global risk reversal would probably be needed to turn things around.”

  • “Yesterday's ECB announcements did nothing to counter the solid BTP spread tightening trend which remains driven by the hunt for carry.”
  • “The spread rally is by no means limited to BTPs as OAT and SPGB spreads have also reached multi-month lows, and many other risk premiums are compressing as well, with 3m10y € vol for example hitting 75bp for the first time in more than two years.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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