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Rabobank: Non-resident demand Is Increasingly Important

BTP

Rabobank suggest that the lower-than-typical demand for the latest BTP Valore offering “highlights the likely increasing importance of a bid from non-resident investors if Italian spreads are to remain contained.”

  • “This does not in itself presage a widening move as ECB rate cut speculation may underpin such a bid. It does, though, provide a cautionary note in that BTPs are unlikely to enjoy insulation from the fundamental/policy outlook in the form of captive demand from a domestic audience.”
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Rabobank suggest that the lower-than-typical demand for the latest BTP Valore offering “highlights the likely increasing importance of a bid from non-resident investors if Italian spreads are to remain contained.”

  • “This does not in itself presage a widening move as ECB rate cut speculation may underpin such a bid. It does, though, provide a cautionary note in that BTPs are unlikely to enjoy insulation from the fundamental/policy outlook in the form of captive demand from a domestic audience.”