10Y OATs Medium-Term Bullish Trend Not Over Yet, SocGen Says
Source: BFW (Bloomberg First Word)
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Jamal Meliani (Societe Generale SA)
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UUID: 7947283
(Bloomberg) -- OATs remain cheap vs bunds and should keep attracting strong domestic and Japanese interest in a yield-starved world, Societe Generale strategist Jamal Meliani writes in client note.
Alert: HALISTER1- Buy June OAT future at 158.76, targeting 160.80 (33bp target), average at 158.10, stop below 157.50; carry + roll- down = 1.3bp/mo.
- French fundamentals are starting to improve, thanks to the timid reforms enacted over the past few years
- OATs have been the main vehicle for risk-averse and yield- starved investors looking to diversify in the long-end in the euro area but shunning low-yielding bunds
- Risk: rating downgrade, but highly unlikely
Source: BFW (Bloomberg First Word)
People
Jamal Meliani (Societe Generale SA)
To de-activate this alert, click here
UUID: 7947283