EGB spreads are mixed at the 10-Year point vs. Bunds.

• OATs have unwound any tightening bias from S&P affirming France’s AA; Outlook Negative status after hours on Friday (not replicating the one notch downgrade to AA- delivered by Fitch back in April), with various sell-side desks pointing to continued focus on fiscal headwinds for the country. The spread last sits at unchanged levels.
• BTPs are 1bp wider vs. Bunds after Friday’s sharp tightening burst, which was seemingly initially facilitated by the broader risk-positive trading theme seen in the European morning (and could have been magnified by lower liquidity surrounding the observance of Italy’s Republic Day holiday), while short-term supply digestion requirements move to the retail sector via the BTP Valore.
• 10-Year Greek paper has consolidated around recent tights after the run of election/IG anticipation tightening.