VIEW: Mizuho suggest that "the new 10Y OAT.....>

EGBS: VIEW: Mizuho suggest that "the new 10Y OAT issued today (Nov-30) offers a

good opportunity for entering into spread tightening vs Bund. To this end, we

add to our model portfolio a long of OAT against RX targeting 27bp, stopping at

45bp. In the event that the ECB delivers sufficient easing, we should see

spreads bull tighten considerably, while a lack of action could mean

bear-widening across EGBs. However, given that recent ECB purchases have

overweighted Germany and Italy vs the capital key, while underweighting France,

OATs should see relatively weaker headwinds in such an instance. 10Y OAT being

back at slightly positive yield is further reason to expect near-term support."