HALISTER1: Stay Cautious EMU Spreads Near-Term as Long Road to ECB : Citi

Stay Cautious EMU Spreads Near-Term as Long Road to ECB : Citi

(Bloomberg) -- March ECB meeting now seems a long way away and would remain cautious near-term, writes Citigroup strategist Alessandro Tentori, in a client note.
  • Yday’s spread widening is challenging the “post-QE paradigm”
  • For the moment, it appears that ECB’s QE program is still preventing periphery from repricing in line with risky assets, but price action has definitely worsened as of late
  • Spillover into semi-core is particularly worrying, especially for countries like France which have relied in the past on a large non-resident investor base
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Alessandro Tentori (Citigroup Inc)

To de-activate this alert, click here

UUID: 7947283