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Keep an eye on Gilt/Bund spread

BONDS
  • BTP/Bund spread is back towards the 100bps level, after we broke below this short term base, as investors look to fade.
  • Gilt is so far trading inline with Bund since the contract opened, but focus remains on the double top 109.5732bps, widest level since April.
  • Above the latter targets 113.4868.

Chart source: Bloomberg

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