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***Italian banks have been selling.............>

BTPS
BTPS: ***Italian banks have been selling government bonds lately according to
the most recent data. ECB data show the monthly outflow reached E14.1bln in June
after E12.9bln of sales in May. The chart shows that Italian banks "sell"
Italian debt routinely in December (as everyone does) but the E14bln sale in
June was extremely large.
- What we cannot say is that these sales made much impact upon spread widening.
There was a widening in the Bund-BTP spread in late May/early June and Italian
debt struggled to keep up with rampant Spanish debt.

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