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The market appears to have absorbed this......>

ITALY
ITALY: The market appears to have absorbed this morning's supply reasonably well
with BTP yields 4-8bp lower on the day and the 15-year outperforming the curve.
- This comes on the back of substantial bill and EGB issuance this week, as well
as several large syndications which will take total supply to ~ EUR80bn.
- BTP futures have rallied sharply with the IKU0 trading at 141.05 and towards
the top end of the day's range (140.26 - 141.28). 
- The Sep contract still trades significantly below the 143.45 Fibonacci
projection previously highlighted by our technical analyst, a breach of which
would set up a move towards 145.00 in the first instance. 

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