HALISTER1: Front-End Flattening ‘Beginning to Look Excessive’: Barclays

Front-End Flattening ‘Beginning to Look Excessive’: Barclays

(Bloomberg) -- 2Y-5Y yields “are beginning to look low even after accounting for a reasonable risk of a return to the zero lower bound,” Barclays strategists led by Rajiv Setia say in April 7 note.
  • “To justify current market pricing, one needs to attach a 40-50% chance” of Fed’s returning to ZLB, which appears at odds with labor market stability and financial conditions
  • While 2/5/10 fly is near recent lows, “given the sharp move in the JPY and the accompanying risk-off sentiment, we would wait for stability before shorting the fly or outright intermediate rates”
  • Barclays continues to recommend U.S.-German 10Y convergence trade and volatility strangles
  • Conditional bull steepener (6m2y-6m3y) offers attractive entry levels because 2s3s curve “has been flattening relentlessly since mid-2015 as global rates have rallied and policy elsewhere has become more accommodative”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Rajiv Setia (Barclays PLC)

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UUID: 7947283

HALISTER: Facebook Is Dow Jones Industrial Average’s $323 Billion Omission

Facebook Is Dow Jones Industrial Average’s $323 Billion Omission

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
AXP US (American Express Co)

People
David Blitzer (Standard & Poor's Financial Services LLC)
Mark Zuckerberg (Facebook Inc)
Michael Chadwick (Chadwick Financial Advisors)
Richard Moroney (Horizon Investment Services LLC)
Vincent Caintic (Macquarie Group Ltd)

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UUID: 7947283

HALISTER1: UST MORNING CALL: ‘10Y Rally Is Getting Toppy’

UST MORNING CALL: ‘10Y Rally Is Getting Toppy’

(Bloomberg) -- “The 30bp+ decline in the US 10Y yield since mid-March is ripe for correction,” independent strategist Marty Mitchell says in note.
  • “We do not discount the chance that it might make marginally new lows (yield basis) that could take it through Thursday’s 1.683% yield low to test key resistance from February at 1.645%, but the 10Y rally is getting toppy and the longer-term momentum studies are starting to turn from overbought extremes”
  • Other observations from strategist morning notes:
  • BMO (Aaron Kohli): There is “no real news flow to explain a lot of this move other than slight beat in Japanese consumer confidence and a warning by Japan’s Finance Minister Aso that intervention would be forthcoming if required”
  • CRT (David Ader): “We’re taking the cautiously bearish approach, booking profits against overbought momentum and various technical objectives having been met. Much of that, too, is about more important data next week than we’ve seen this week and the simplicity of some duration being added with the auctions”
  • Seaport Global (Tom di Galoma): “Still favor buying dips on weakness as Fed decides to stay on hold in 2016 longer than the market believes”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Aaron Kohli (Bank of Montreal)
David Ader (CRT Capital Group LLC)
Marty Mitchell (The Mitchell Market Report LLC)
Tom Di Galoma (Seaport Group LLC/The)

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UUID: 7947283

HALISTER: Behind the Scenes at Disney as It Purged an Heir Apparent

Behind the Scenes at Disney as It Purged an Heir Apparent

Alert: HALISTER
Source: NYT (New York Times)

Tickers
DIS US (Walt Disney Co/The)

People
Robert Iger (Walt Disney Co/The)
Thomas Staggs (Walt Disney Co/The)
Douglas Creutz (Cowen & Co LLC)
Michael Eisner (Tornante Co LLC)

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UUID: 7947283

HALISTER: Telefonica Names Pallete Chairman After Alierta Quits (Correct)

Telefonica Names Pallete Chairman After Alierta Quits (Correct)

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
TEF SM (Telefonica SA)

People
Jose Maria Alvarez Pallete (Telefonica SA)
Maria Alvarez (Telefonica SA)
Cesareo Alierta Izuel (Telefonica SA)
Jose Echenique Landiribar (Banco de Sabadell SA)
Jose Lopez (Telefonica SA)

Topics
Who's News - People
Management Changes

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UUID: 7947283