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Commerzbank Turn Neutral On BTPs Post-ECB, Maintain Long End € IRS Steepener & ASW Tighteners

EGBS

Commerzbank sum up their post-ECB market views:

  • “With the ECB all but done on rates but not on the PEPP, carry products look well supported, particularly on a risk-adjusted basis, and we turn neutral on BTPs.”
  • “Steepening pressure on ultra-long curves also seems in store and we reiterate our strategic 10-30y € IRS steepener.”
  • “Eroding implied vols and the lack of remuneration argue for ongoing ASW-tightening and we stay short.”
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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