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Potential For Net EGB Flow To Promote Further Peripheral Tightening

EGBS

Early trade this week sees peripherals run little changed to 1bp tighter vs. 10-Year Bunds.

  • The 10-Year BTP/Bund Spread continues to operate below 150bp, registering an incremental cycle tight early today.
  • The generally upward sloping curve shapes and focus on the ECB cutting cycle (despite volatility in STIR pricing) remains RV supportive for peripherals.
  • This has allowed compression to remain at the fore and promoted demand at primary syndications.
  • Further to this, we flag a less arduous EGB issuance slate to digest this week and decent backflows over the next couple of weeks as supportive for spread tightening, all else equal.
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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