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Strategists at Rabobank including..........>

PORTUGAL
PORTUGAL: Strategists at Rabobank including Richard McGuire and Lyn
Graham-Taylor see the Fitch Ratings decision on Portugal (December 15th) as
crucial; in their words a "Rubicon" moment.
- They write "a comparison of spreads versus average ratings sees 10yr Portugal
looking to be fair value at 163bp versus Germany (it is currently at 157bp) if,
as seems likely, Fitch upgrades the country on 15th December. However, the fact
that this move will see the country return to most investment grade benchmarks
argues that a tighter spread is likely"

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