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SocGen Recommend 10s30s BTP Steepeners Vs. SPGBs

EGBS

Societe Generale recommend entering 10-30y BTP steepeners, cross-market vs SPGBs.

  • “The 10-30y SGPB-Bund curve is at a relatively steep level, while the 10-30y BTP curve is still steepening.”
  • “As 10y BTP continues to outperform, the 10-30y BTP curve will likely steepen faster than the 10-30y SPGB curve.”
  • They warn that “the major risk to steepeners is a selloff in 10y BTPs. This could be caused by a resurfacing of political risk in Italy or risk-off sentiment in credit markets.”
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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