As Bankinter experts pointed out on Monday:
“This situation raises expectations that the ECB will continue an ultraexpansive monetary policy to prevent deflation. In this context, we expect a fall in the IRR of Oficial Credit Institute bonds, more in Spain than in Italy because there won’t be any auction there and some late in core bonds once the impact of geopolitical risk has been reduced. Estimated range TIR Bund: 1,145%-1, 155%.”
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