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JP Morgan: Sell Spanish debt, it is re-joining the Pigs
Investment bank JP Morgan has closed its overweight debt plays in Spain and Italy as the two countries re-couple with the Greek debt drama. It comes as both Spain and Portugal prepare for fresh debt issues today and after peripheral spreads have widened sharply over speculation a near-term restructuring of Greek debt looks imminent. Spain is viewed as particularly vulnerable if this scenario eventually plays out as over the past month its spreads versus the German benchmark have re-traced two thirds of their previous gains.