BTPs will continue to remain under pressure as the EU has rejected Italy's budget proposal and Draghi has also issued a warning. Italian spreads are soaring and bonds will come under intense scrutiny.
The Italian Government sent the aggressive budget proposal to Brussels, with Finance Minister Tria suggesting he can "explain" things to EU counterparties and receive acceptance. Market participants know it's a long shot, and BTPs should come under more pressure.
"Italy must 'calm down' and stop questioning the euro: Draghi" ~ Reuters Last week we learned that Italian yields was what halted the euro from moving higher, technically. As these issues continues to brew within the eurozone, observing the negative correlation of these two pairs is worth noting. Italian yields isn't far from 4%. Whichever way the pair goes, a...
Italian assets are at a premium now, 10-year Italian yields jump more than 3.5% for 1st time since Feb2014 as the market is feeling the Italian budget is in off track. Besides, U.S 10-year Treasury yields closed at 3.23% on Friday. Technically speaking, U.S and Italy 10-year Treasury Yield Cure rates formed a double bottom and produced a bullish break through the...
Italy continued to be a sticking point for European policymakers. Salvini and DiMaio are not collaborating and want a higher budget deficit for 2019 than the EU will allow. Deadline is October 15th.
Italy's populist government kept some of it's promises and delivered a hefty budget for 2019 ata deficit of 2.4%. Markets are pricing in more of a conflict between Italy and Brussels. THis move down has quite a ways to go.
If Italy 10y yield breaks and closes above Kijun Sen (3,07 %), then BTP market Will face a massive selloff, targetting 3,85 % - 4,00 % zone. Get ready for short!
Clash between EU and Italy becoming more evident as Italy Rating Outlook Cut by Fitch on Possible Fiscal Loosening but "Italians come before ratings agencies" deputy PM says - “We have to put the financing in the budget so that at least 5 million impoverished Italians can get back to work.”
On route to triangle PO at 3.7-3.8 area $MIB40, $EURUSD, $EWI
Possible C&H, PO at 5 area $EWG, $DAX, $MIB40
90.00 might break soon, on the back of continued tension between Italy's populist government and the EU.
Recent comments from Italy's DiMaio continue to worry markets that a future clash is possible which will put yet another dent in the EU's cohesion.
This shows us how critical the situation is , and it is also among one of the contributing factors towards the weakening Euro(BTW the strong DXY isn't helping). This is a spread chart and shows us the divergence in yield between the two states. It gives us an idea as to how investors are pricing risk relative to a "risk-less counterpart" which in this case , it...
A chain is only as strong as its weakest link. Right now Italy doesn't look so good with capital flights and a weakening economy. On the technical side of things, price had a nice reaction with the lows which happens to be the all time lows in the Italian bonds. This is a place I'd look for longs but first , I'd need proof that buyers are still here.
hello guys here's a new idea on italy BTP. First of all, we saw recently that the market wants to speculate (again) on BTP, this means that interest rate until September will go down, then will rise due to rating agencies decision and what is called 'DEF', the document of economics and finance by the Government. In this document there'll be the outline of fiscal...