Periphery Widening to Reverse, Stay Overweight BTPs: Commerzbank
Source: BFW (Bloomberg First Word)
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2539Z GR (European Central Bank)
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Benjamin Moute (New Finance Capital)
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UUID: 7947283
(Bloomberg) -- Hunt for yield should eventually extend to the periphery, proving the current sell-off temporary, Commerzbank strategists including Benjamin Schroder write in client note.
Alert: HALISTER1- Peripherals were pressured earlier this week, even as ECB QE buying increases, amid the broader risk-off move and home- made delevelopments including Spain’s struggle to form a new govt, Greece’s renewed default concerns and the negative outcome of the Dutch referendum on the Ukraine EU association agreement
- Stay with preference for BTPs vs the rest of the periphery as the TLTRO 2 should continue to keep investor focus away from bank concerns toward political risks
- Remain tactically neutral on duration, re-enter longs at 10Y Bund yields above 0.25%
- Prefer tightener vs Bunds via 10Y DSLs to capture QE dynamics
- 30Y Austria offers value vs France and Germany
Source: BFW (Bloomberg First Word)
Tickers
2539Z GR (European Central Bank)
People
Benjamin Moute (New Finance Capital)
To de-activate this alert, click here
UUID: 7947283