Italian Bonds Showing Mounting Signs of Reversal After Rally
- BTP futures contract faltering against layer of resistance
- Italy-Germany 10-year yield spread has resumed widening
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Italy’s bond futures had the best month in seven in February. Chart patterns suggest that euphoria may not last.
The contracts show mounting evidence of a near-term top, with resistance at 130.99, which is the mid-way point of the decline in January that preceded last month’s rally. The bearish engulfing pattern at the top suggests the broader downtrend may be restored.