Fade Recent Bund 10s30s Steepening as Long-End Supply Falls: SG
Source: BFW (Bloomberg First Word)
People
Jamal Meliani (Societe Generale SA)
To de-activate this alert, click here
UUID: 7947283
(Bloomberg) -- Expect bull-flattening to resume in the medium term, helped by favourable supply-demand dynamics and the prospect of further Bund rally, Societe Generale strategist Jamal Meliani writes in client note.
Alert: HALISTER1- Sell 100 Bund futures vs buying 48 BUXL futures
- Suggest implementing flattener in the futures space with the underlying Bund/Buxl CTD yield spread being 99% correlated to 10s30s Bund spread over the past three months
- Risks: Sharp recovery in inflation expectations along with less dovish ECB leading to a sell-off in core yields and a bear steepening at the long end of the Bund curve
Source: BFW (Bloomberg First Word)
People
Jamal Meliani (Societe Generale SA)
To de-activate this alert, click here
UUID: 7947283