Resume Tactical Overweights in 10Y Italy vs Spain: Commerzbank
Source: BFW (Bloomberg First Word)
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David Schnautz (Commerzbank AG)
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UUID: 7947283
(Bloomberg) -- Resume sidelined tactical overweight recommendation for Italy vs Spain based on relative valuations as well as recent and upcoming rating, political and bond supply events, Commerzbank strategist David Schnautz writes in client note.
Alert: HALISTER1- Long BTP June 2026 vs SPGB April 2026 in ASW; target 18bp, stop -40bp
- 10y area the sweet spot on the curves to express view for a consolidation of Spain’s outperformance based on scheduled auctions, with no 10y BTPs supply until October 28 and potential syndicated deal from Spain
- New 50y BTP also out of the way, and sense timing and valuation render overweight positions in Italy vs Spain much more attractive from a risk-reward perspective
Source: BFW (Bloomberg First Word)
People
David Schnautz (Commerzbank AG)
To de-activate this alert, click here
UUID: 7947283