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Natixis: Long BTP 30Y Vs. BTP 10Y In ASW

BTP

Natixis write “with new fears about the US banking system and some risks of market disappointment re: the ECB rate cut scenario, we think it makes sense to position for a tactical repricing of credit risk.”

  • “The 10-30Y BTP ASW is historically correlated with the 10Y BTP-Bund and has lagged in recent months. Any widening of the BTP-Bund would translate into an underperformance of the 10Y tenor on the ASW curve, hence our recommendation to go long 30Y vs. 10Y in ASW (entry: -86bp; target: -65bps; stop-loss: -93bp).”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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