Covered supply to improve as secondary squeeze tightens

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Covered supply to improve as secondary squeeze tightens

Euro in vice resized
low budget - money in the vice | Photographer: Nikita Sobolkov/nikkytok - Fotolia

Covered bond primary supply is likely to improve, but will not be enough to sate investor appetite. With dealer inventories low, the technical squeeze will tighten, even as an unwinding of the flight to safety bid caused Bunds to fall sharply on Friday.

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