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Fiscal Matters Eyed

EGBS

Commerzbank note that “the Italian government will present the updated budget plan today. Spreads vs. 10y Bunds are back above 190bp for the first time since May as markets have made room for the lower growth and higher deficits figures which had been floated in the press (deficit of up to 4.5% vs. target of 3.7%).”

  • “Budget risks also loom for OATs with Macron to present his 2024 draft today. Yet, fiscal slippage is less relevant for OAT investors considering the outperformance against BTPs during the latest widening episode.”
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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