HALISTER1: DBRi 2030 Auction to Go Well, Cheap vs Nominal Bunds: SocGen

DBRi 2030 Auction to Go Well, Cheap vs Nominal Bunds: SocGen

(Bloomberg) -- DBRi 04/2030 remains particularly cheap, offering a z-spread pickup of 13bps vs bunds, while most core linkers offer pickup of ~5bp, SocGen strategists including Marc-Henri Thoumin write in client note.
  • While auction bond will be tapped further, see no reason for it to trade so much cheaper than DBRi 2026, OATei 2030
  • Bond remains an excellent candidate to own in IOTA terms (on breakeven basis vs equivalent inflation swap)
  • Counting on switches from other core linkers, shorter DBRis, expect the auction to go well
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Marc-Henri Thoumin (Societe Generale SA)

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