We recommended to buy Bra 07 old and sell Bra 07 new

MARKET DYNAMICS:

As we expected yesterday, market opened weaker and withing the
first half an hour of trading it gave up the whole trading range
of yesterday. It appears someone is trying to push market lower
and exploiting illiquidity. The demand for bonds is weak since
market has been trading at rich levels and nobody would be
willing to step in and buy bonds at the moment. Expect more
downside today, especially if UST accelerates its drop and
political noise keeps increasing. On the curve, Bra 27 and 25s
outperformed slightly Bra 24. The relative value we recommended
to buy Bra 07old and sell Bra 07 new has been moving in right
direction lately, and Bra 07old appreciated to Bra 07new.Bra 15EUR
managed to oupterform slightly Bra 12EUR. 07EUR stays rich to 07$new


This document is intended for informational purposes only. It is not a
solicitation, commitment or an offer to buy or sell or to participate in any
particular trading strategy, nor is it an official confirmation of terms. You
should consult with your own tax, legal and investment adviser on any such
decision. It may be based on information generally available to the public
from sources believed to be reliable. No representation is made that it is
accurate or complete or that any returns indicated will be achieved. Past
performance is not necessarily indicative of future returns. BBVA disclaims
any and all liability relating to these materials, including, without
limitation, any express or implied representations or warranties for
statements or errors contained in, or omissions from, this document. Price,
availability and other information are subject to change without prior
notice.

Golodner, Aleksandr [Aleksandr.Golodner(at)bbvany.com]