BTP, slight rise in the closing week, declining spreads to 104 basis points – Reuters Italy

       

 MILAN, March 20 (Reuters) – – Secondary Italian positive, in line with the peripheral compartment, sitting in a poor macro cues on the front and back where it seems the clear after heavy corrections seen in recent days. Around 12.30 the yield spread between BTP and Bund on the stretch to 10 years down to 104 basis points from 106 of the final session yesterday and, in parallel, the rate of ten goes to 1.22% from 1 , 25% of the last closing. “We are catching up in the closing week after the weakness in recent days linked to the issue of the  new 15 years and developments on Greece. We have seen taken profit but today, as yesterday, the performance is again positive in a context that does not see straordinamente nothing out of the norm, “says Luca Cazzulani, strategist at UniCredit. To improve the performance of the market, as of yesterday, the trend better than expected for the third operation Tltro ECB and the statements of the Federal Reserve that, after the meeting of the FOMC on Wednesday, opened to the rise in interest rates cautiously. The meeting today concludes a week that has seen some pressure on the long and extra-long curve, in line with what is seen in some countries of the peripheral compartment. Particularly struck 30 years in one day on Wednesday has left on the ground almost 4 points. Of particular note is the issue of the new 15 years by the Treasury on Tuesday with an amount – 8 billion against orders for 16.5 billion – higher than expected in the market that, according to some  operators, has contributed to the sharp correction in the following days. “The trend seen in recent days on the extra-long Italian curve is closely linked to the issue of the new 15 years by the Treasury. The amount was important and therefore, even if the ECB through the ‘Qe’ is providing support to the market, the stock must be reabsorbed, “sums Cazzulani. “The trend in the long end of the curve Italian was in line with that of the Spanish curve,” he adds. According to the operator of an Italian bank instead the trend of 30 years so you can connect to the issue of the new 15 but also to the segment of the curve on which they would be concentrating purchases of the ECB. “If we assume that the ECB is buying bonds especially long and extra-long of the countries ‘core’, the only ones able to offer positive returns, and instead is focusing on the most short-term for the peripheral countries, we could explain the weakness 30 years of  Italian this week, “said the trader, adding that it is still unclear on which section of the curves concentrate purchases Frankfurt. ========================= ====================== 12.45 ======= BUND FUTURES June 158.73 (+0.04) FUTURES June BTP 141.02 (+0.32) BTP 2 YEARS (MAG 17) 101.965 (+0.048) 0.231% BTP 10 YEARS (DIC 24) 111.717 (+0.289) 1.218% BTP 30 YEARS (SET 44) 158.375 (+0.168) 2.097% ======================== SPREAD (PB ) =========================== ——————— – ————– ———- FORMER TREASURY / BUND 10 ANNI 177 178 BTP / BUND 2 YEARS 46 50 BTP / BUND 10 YEARS minimum 104 106 106.1 104.2 101.9 112.8 maximum BTP / BUND 30 YEARS 149 150 BTP 10/2 YEARS 98.7 99.1 87.9 85.7 =========== BTP 30/10 YEARS ================================================== == site www.reuters.it other news Reuters in Italian. The top news also on www.twitter.com/reuters_italia 

       
          © Thomson Reuters 2015 All rights reserved Market Reuters.