Macro Digest: Critical level in BTP 10 y coming up!!! 400 bps BTP next?

My friend Andrew Baptiste from Tag618.com, whom I rank top three in the world, tells me 2,42/2,45 is last line of defense… We are trading AT the level now…

 

ACTION:

 

We still recommend best proxy trade to be my earlier EURCHF short – The Italian "non-event" could be a EURCHF event

 

We see both EUR (weaker on Italy, Turkey) and CHF (stronger on explosive industrial production and falling balance sheet) working..and USDCHF is a big sell from PPP perspective – below excellent chart from GaveKal: We are looking at it now and if triggered will do separate trade…

 

 

 

 

Generic Italian Bond curve…

 

 

 

Drew's Chart to me from last week

 

 

 

 

This is ABSOLUTELY critical reading on Italy – from Blancharrd, former IMF Chief Economist & Colleages – best scenario and top down analysis I have seen!

 

LINK to article:

 

 

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Investment Officer

 

Saxo Bank A/S  |  Philip Heymans Allé 15  |  DK-2900 Hellerup
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