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9 Aug 2013
Flash: EUR - Spanish bonds are having a good summer! - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that Spanish bonds having a good summer.
Key Quotes
“News flow has been friendly for peripheral European debt, with rates staying low and economic data improving at the margin. 10yr Bono/Bund and BTP/Bund spreads are posed to move back below their lows for the year.”
“Yield-hungry investors will continue to be drawn to these markets in the absence of renewed crisis, despite warnings in the FT about the long-term outlook for the Euro Zone.”
“It is striking though, that the BTP/Bund and Bono/Bund spreads continue to track each other so closely. I prefer Spain to Italy as an investment, with lower overall debt levels and slightly less political uncertainty, but looking at the way the two markets behave, I should like Span more, simply because the yield is still slightly higher!”
Key Quotes
“News flow has been friendly for peripheral European debt, with rates staying low and economic data improving at the margin. 10yr Bono/Bund and BTP/Bund spreads are posed to move back below their lows for the year.”
“Yield-hungry investors will continue to be drawn to these markets in the absence of renewed crisis, despite warnings in the FT about the long-term outlook for the Euro Zone.”
“It is striking though, that the BTP/Bund and Bono/Bund spreads continue to track each other so closely. I prefer Spain to Italy as an investment, with lower overall debt levels and slightly less political uncertainty, but looking at the way the two markets behave, I should like Span more, simply because the yield is still slightly higher!”