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Spreads Lowest Since May 18, Mirroring Risk Rally

BTP

10Y BTP spreads edge lower to their tightest to Bunds since May 18, just below 191bp and down 9.4bp on the session, mirroring the risk asset rally. Intraday chart below is the spread alongside Eurostoxx equity futures.

  • BTP future up only 50 ticks on the day (last 129.42) however with the German yield rise representing half of the spread narrowing. Still worth noting the technical outlook: primary trend condition is bearish; next significant resistance is at 131.24 (high today was 130.09).


Source: BBG


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