Halister News

(Bloomberg) -- The demise of U.S. inflation spells a new bull flattening phase for European rates, led by downward USD terminal rates estimates, Citigroup strategist including Aman Bansal writes in a client note.

• After already considering long-end flatteners, now pull the entry trigger based on current valuations
• German 10s30s looks steep based on inflation expectations, 3y1y OIS and German PSPP weighted average maturity, see fair value just below 69bp, vs 81 on Friday
  • The turn latest flatter in German 10s30s has shown impressive decoupling from the swaps market, where a public sector entity may be rate locking in large size
• Recommends entering German 10s30s flatteners, targeting 65bps, based on expectations of a U.S. led rally and further falls in European inflation expectations; stop above the recent high at 87bps

To contact the reporter on this story: Stephen Spratt in London at sspratt3@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net David Goodman

--TOM LAVELL

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS, click on Display & Edit, then Set Alert Delivery

DOWNGRADES

• Cornerview Constructions
  • NCDs cut to D from BB- at ICRA
  • Cites instances of delays in servicing interest payments
• Inox India
  • Long-term bank facilities cut to BBB+ from A- at Crisil
  • Cites continuing losses at company’s overseas subsidiary

UPGRADE

• Gurdas Agro
  • Non fund-based limits raised to A3 from A4 at Brickwork
  • Cites improvement in operating income

Economic Release Details: {BOJDPRLT Index ECOD} --BRETT MILLER

Economic Release Details: {BOJDPBAL Index ECOD} --BRETT MILLER