Halister News

(Bloomberg) -- 10Y TIPS breakeven at about 137bp is below closing levels since Feb., and despite “significant uncertainty” about implications of Brexit vote, is in part “a forced portfolio readjustment, which will be unwound in the coming weeks,” Citi strategist Jabaz Mathai says in note.

• Despite risks including USD strength (would lower inflation expectations) and sharper drop for energy prices, “much is already priced in”
• Citi recommends buying half risk now, adding on a move to 130bp, stop on a close below 120bp