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Peter Chatwell of Mizuho said in a........>

EGB FLOWS
EGB FLOWS: Peter Chatwell of Mizuho said in a morning note that there continues
to be "impressive demand" for core/semi-core spread trades and for OATs in
particular and that the very long-end, "relative to Germany, is only just
beginning to be realised by investors"
- "We think the outperformance from 30-yr France in 10s/30s box to Germany has
structural potential", Chatwell adds
- Chatwell added that in their view SSAs and covered bonds "are at cheap
valuations" and have the "potential to outperform on further spread-tightening"
and think indexed investors "may be likely to reduce their BTP underweight,
given the pain of missing the carry".

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