Waiting for that â¬9.5bn Friday Italian bond auction? Here are some charts to mull over ahead of (another) litmus-test of demand for peripheral eurozone debt. Italy will be selling three- and 10-year BTPs plus seven-year CCTs. Courtesy of Marc Ostwald at Monument Securities, the charts show the spread between three- and 10-year German and Italian bonds. The point, Ostwald says, is that thereâs already a rather large concezzione priced in to help take down supply in todayâs sale (not to mention demand from local banks or European Central Bank buying). In fact, he says, if youâre looking for an âinteresting tradeâ this Friday, thereâs a 98 basis point pick-up to be made by selling the five-year German Bobls from Wednesdayâs failed auction, in exchange for Fridayâs three-year BTP. Thatâs right, selling safehaven German debt to buy Club Med Italian bonds. We expect one of Deutschlandâs debt defence brigade to start issuing a statement any second now . . . DO NOT DIZPUTE ZE ZAFETY OF ZE BOBL SHOULD YOU CHOOSE TO ZELL ZE BOBL BAD ZINGS WILL HAPPEN TO YOU SCHWEINHUND. http://ftalphaville.ft.com/blog/201...ressant-eurozone-bond-trade/?updatedcontent=1 ROFL ! Ha, ha, ha...