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UniCredit Look At Value Opportunities Ahead Of Next Week's Auction Cycle

BTP

Ahead of next week’s auction process UniCredit write “BTPs on auction offer various trading ideas, which can suit different investor preferences.”

  • “Going long 3Y and 30Y BTPs vs. bonds in the 10Y bucket looks appealing at the moment and such positioning can be considered as a hedge against possible upward pressure on yields.”
  • “We like 7Y BTPs vs. 5Y BTPs in ASW terms, as the pickup has remained attractive, unlike on other EGB curves, and the trade is not directional.”
  • “Finally, we like a 20/30Y steepener as the curve is still inverted in that segment.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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