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OAT: 10-year BTP/OAT Spread At Tightest In A Decade

OAT

With frictions already evident amongst PM Barnier's potential cabinet (see our Political Risk team's earlier post), French political risks remain at the fore. Combined with earlier reports regarding further 2024 fiscal slippage, the 10-year BTP/OAT spread has tightened further, now ~3bps tighter today at ~58bps. The spread is on track for its tightest close in a decade.

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With frictions already evident amongst PM Barnier's potential cabinet (see our Political Risk team's earlier post), French political risks remain at the fore. Combined with earlier reports regarding further 2024 fiscal slippage, the 10-year BTP/OAT spread has tightened further, now ~3bps tighter today at ~58bps. The spread is on track for its tightest close in a decade.