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OAT and BTP test supports versus the German 10yr

BONDS
  • Another low for the OAT/Bund spread, after breaking through the 49.00bps handle, the spread is another 0.7bps tighter, tightest prints since March last Year.
  • Some Investors will look for 48.00bps next, but better support is seen further out to 47.04bps
  • The outperformance in BTP and OAT futures, is also helping the BTP/Bund spread tighter, still just short of 153.2bps, Friday's printed low.
  • Aside from the Psychological 150.00bps mark, next support area of interest comes at 145.84bps, the March 2022 low.

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