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Continued tightening of the spread

BUNDS
  • Continued tightening of the BTP/Bund spread this morning, by 5.3bps so far, after the spread tested the widest level since 18/05/20 at 211.65 on Friday.
  • The spread is now at 205.7bps
  • RECALL as per the FT overnight: "The ECB is set this week, to strengthen its commitment to prop up vulnerable eurozone countries debt markets if they are hit by a sell-off, as policymakers prepare to raise rates for the first time in more than a decade."
  • "The bulk of the 25 governing council members are expected to support a proposal to create a new bond-buying program if needed to counter borrowing costs for member states, such as Italy, spiraling out of control."

Chart source: MNI/Bloomberg

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