7Y Valuation ‘Slightly Stretched’ Before Auction, Nomura Says
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- $28b auction at 1pm ET also may get less benefit from month-end extension bid than previous sales because of “reduced gross supplies on the belly and long end,” and March jobs report risk, Nomura strategists say in unsigned note.
Alert: HALISTER1- They expect “healthy takedown,” however, because “the 7yr also looks attractive versus the 5yr, and weak demand on 5yr usually led to a better auction on 7yr a day after in recent history”
- Auction has additional support from Yellen’s “dovishness on the economic outlook and cautious stance on inflation”
Source: BFW (Bloomberg First Word)
To de-activate this alert, click here
UUID: 7947283