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Watch the BTP/Bund spread

BONDS
  • This is a spread we pointed out for a while now, with some desk seen fading some of the moves circa the psychological 100bps mark.
  • BTP/Bund spread is still drifting towards lowest levels since April, now at 97.41bps.
  • Key support (Tightest) level is still at the March low, which is much further out towards 90.4048, and is also the tightest level since 12th March 2015

Chart source: Bloomberg

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