Foreign Demand Seen Supporting 10Y USTs vs 5Y, 30Y: RBS
Source: BFW (Bloomberg First Word)
People
John Briggs (RBS Securities Inc)
To de-activate this alert, click here
UUID: 7947283
(Bloomberg) -- Foreign demand expected to return for historically preferred benchmark 10Y USTs, favoring 10s out-performance in 5s10s30s fly, RBS strategist John Briggs writes in a client note.
Alert: HALISTER1- Trade view expressed through buying 10s on 5s10s30s cash fly at -27bp, target -36bp with stop at -25bp
- Foreign investment sponsorship has been a “substantial driver” of past 10Y richening
- Current market correction due to a “short term pullback in a bull bond market”
- 5s10s30s fly currently trades ~8bps off current 2016 high level (~-19bp) and ~10bp above yearly low (~-38bp)
Source: BFW (Bloomberg First Word)
People
John Briggs (RBS Securities Inc)
To de-activate this alert, click here
UUID: 7947283