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GS recommends selling 10y BTPs vs Bonos

EGBS
  • "While we acknowledge that ongoing fiscal transfers support a more constructive relationship between Brussels and Rome than in 2018, the uncertainty linked to the elections and the ensuing policy choices still make for a challenging backdrop."
  • "Contrary to the Spanish PMIs, Italians PMIs weakened notably in July... and our economists expect delays in the implementation of Recovery Fund reform to weigh on Italian growth."
  • "It is unclear whether such level of ECB balance sheet support will be sustained."
  • GS targets 125bp with a stop at 90bp and entry at 100bp.

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