Long OAT 2.5% 9/27 vs BTP 0.95% 9/27

At about 2 0bp, the tightening potential of 202 7 -2 8 BTP – OAT spreads now looks very limited. With the French political news flow being more supportive ahead and in order to capitalize on any risk-off event we may have in the coming months, BTP s look more vulnerable than OATs ahead, hence our recommendation to enter in a Long OAT 9 /2 7 vs Short BTP 9/27 strategy at - 2 1 pb ( - 33 bp target & - 15 pb stop-loss).