⚖️🇮🇹🇩🇪 Front End BTPs Extend Gains, Spread Tightens

• European bonds pared gains as the ECB released a statement on anti-fragmentation tools which, according to the ING desk, it seemed to have been drafted last week. Technically, a copy and paste from Thursday's meeting

• Now, BTPs extend gains with the 2y yield now down 41bps, 5y yield is down 48bps. The spread between Italian and German 10y pulled back to 215bps from 242bps seen on Tuesday. EUR (inversed, yellow) historically follows this differential, now trades steady and closer to session lows as we head into the FOMC