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Rally On Conte's Coalition Comments

BTP

Front BTP futures have rallied over 50 ticks in the past hour with 10-Yr spreads/Bunds dropping 3.5bps on comments from PM Conte that he is working on a new coalition pact that would last until the end of the legislature. This would help assuage concerns of an imminent gov't collapse.

  • Coalition partner Renzi due to give a press conference at 16:30GMT, w PM Conte and his gov't speaking at 19:30GMT.
  • The 10-Yr BTP yield has dropped more than 5bps but Bunds have kept up to some extent.
  • Front BTPs testing resistance at 151.70, Jan 12 high; next resistance almost 100 ticks higher, 152.67, the trend high print, Jan 8 and the bull trigger.

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