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Italy vs Germany

BONDS
  • BTP has caught up with Bund, with the spread tightening 1.9bps, and testing last week's low. Not seen as a support.
  • Support to watch is the March low at 145.8376, which was also the tightest level since the 3rd of Feb.
  • The spread now trades at 149.84bps.
  • Receiving interest and hunting yields has unwound some of yesterday's price action.
  • Resistance in BTP moves down to 139.46, followed by140.86 20-day EMA.
  • A break above the latter, opens to this week's gap at 140.09

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