- Italian bank holdings of domestic public bonds fell by EUR 21 bn in June
- Holdings remain relatively high and there could well be more reductions
- The ECB is an important offset for now, keeping BTPs well supported
- However, tapering (expectations) should see Italian spreads over Germany rising
DISCLAIMER: This report has not been prepared in accordance with the legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead. This report is marketing communication and not investment research and is intended for professional and eligible clients only.