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The Italian BTP rally this morning looks to...>

ITALY
ITALY: The Italian BTP rally this morning looks to have been fleeting, with the
Jun18 future lower on the day, last down 15 ticks to 131.27. Market appears
concerned with Lega`s Salvini insisting on forming a government with eurosceptic
Savona as finance minister, reviving fears of `parallel currency` mini-BOTs. 
- That`s been most clearly seen in the 2-year BTP segment which had been most
impacted by mini-BOT talk, with yields having dropped by more than half since
Friday`s 0.69% high to 0.27% at one point, now at 0.53%.
- 2s10s curve had bull steepened to 210bps but now flattening, to 195bps.
- CTZ/BTPEi auction results due shortly.

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