Barclays notes:
5y5y fwd Italian yields have moved 210bp higher to 4.10% since mid March, led by the sell-off in Germany and spread widening in periphery due to concerns over Greece.
We find the fair value at 3.30-4.30% and see room for a rally towards 3.50% during summer. We keep our long 5y Bobl, receive 1y1yf EONIA and long Bund ASW trades.


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