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The Rates Research team at BNP Paribas have....>

BOBL
BOBL: The Rates Research team at BNP Paribas have initiated a new trade to sell
the Bobl on an asset swap spread basis.
- Their reasoning is that German ASW spread have entered their seasonal widening
period and have widened every year since 2004 (except for 2009). Yet, this year,
the spread has been heavily capped since the ECB meeting. Additionally, BNP
believe that the "end of APP will lead to a normalisation of ASW to levels
consistent with our long-term models".
- BNP "think there is long positioning is on the 5y (relative value trading on
the 5s10s asw box long 5y)"

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