More reasons to be worried about Spanish and Italian Bonds
I don’t normally follow charts closely, but the last time an ex-colleague of mine, Chico Khan-Gandapur sent out an interesting chart on European debt, it worked out. This one also points to risk of a breakout in Italian yields.
It is flirting with the extended trend-line in white, and an Inverse head and shoulders pattern in red.
With the color that the ECB remains on hold (which is expected) and no more hopes of a big firewall announcement creating an immediate bid, I like being short 10 year Spanish and 10 year Italian bonds.