HALISTER1: SPGB Outperformance vs BTPs Set to Continue: SocGen, RBS

SPGB Outperformance vs BTPs Set to Continue: SocGen, RBS

(Bloomberg) -- Spanish 10y bond outperformance vs Italy after Spain’s Socialist party leadership cleared the way for Rajoy to form a new govt may continue, say strategists at SocGen and RBS.
  • Remain bullish Spain, see further outperformance as Spain converges to semi-core, writes RBS Marco Brancolini in a client note
    • Like to be long 50y Spain vs 30y BTP or 30y UST, targeting flat in both, and long 30y Spain vs OAT target 100bps
  • Ongoing worries over Italy make long-term preference for SPGBs over BTPs still appealing, writes SocGen strategists including Marc-Henri Thoumin in a client note
    • See further BTP/Bonos differentiation in coming sessions
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Marco Brancolini (Royal Bank of Scotland Group PLC)
Marc-Henri Thoumin (Societe Generale SA)

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