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Italy vs Germany

BONDS
  • BTP is clear through support at 122.00 (psychological).
  • A clear break below the latter, would open to 121.53 1.618 proj of the May 12 - 24 - 26 price swing.
  • Italy continues to lead Europe to the downside, and the BTP/Bund spread has cleared that 2022 double that was noted at 205.10bps, and also through the 61.8% retrace of the 2020/2021 fall.
  • Next upside is seen at 210.00, which is very close, with the spread trading at 208.8bps.

Chart source: MNI/Bloomberg

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