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Further Spread Tightening Awaits Next Leg Higher In Risk

BTP

BTP spreads are tighter Monday, with 10Y/Bund 4.8bp narrower at 183.3bp.

  • Unsurprisingly the spread is broadly tracking broader risk appetite, and the compression has stalled today along with the pause in equity gains (chart below is inverted Euro Stoxx Futures and 10Y BTP/Bund).
  • The area around the session low of 183bp is the one to watch for now, with the 180bp area (the intraday low tested Mar 15, 21 and 22) after that.

Source: BBG, MNI

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