Euro Area rates weekly review

Barclays notes:

As negotiations between Greece and its creditors have taken a turn for the worse, with no near-term compromise in sight, contagion has started to be felt in the EGB market.A full-scale contagion from Greece to other EGB markets similar to 2011/12 remains unlikely, in our view. We hold onto our long 5y Bobl, receive 1y1y fwd EONIA, long 5y5y fwd Italy outright and long Bund ASW vs EONIA trade ideas.