‘Valuations Are Rich Across the Curve’: Societe Generale
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- Carry is near lowest level of past year and recent rate cuts by ECB and BOJ “have led to increased demand from overseas accounts for higher-yielding Treasury securities,” strategists led by Subadra Rajappa say in April 7 note.
Alert: HALISTER1- “We are reluctant to recommend duration shorts as near-term technical factors could continue to favor the long end,” however “there is potential for some re-pricing in the front end of the curve if the market starts to price in more rate hikes,” with only 1 by end-2017 currently priced in
- They “prefer to express this view conditionally,” via 3m forward 2s10s and 6m forward 5s30 bear flatteners
Source: BFW (Bloomberg First Word)
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UUID: 7947283