Fade Recent Underperformance of Long-end France vs Germany: UBS
Source: BFW (Bloomberg First Word)
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Nishay Patel (UBS Global Asset Management Japan Ltd)
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UUID: 7947283
(Bloomberg) -- Based on numerous metrics such as RV, cross-market valuations and economic outlook, 25Y OAT yields are ~15bps too wide vs Germany, writes UBS analysts including Nishay Patel in a client note dated Feb. 8.
Alert: HALISTER1- Recent outperformance of Germany driven by positioning, long-end liquidity, OAT supply concession
- Expected improving economic fundamentals, resulting in higher core yields and risk assets, to cause spreads to tighten over medium-term
- Recommend long OAT 04/2041 vs bund 07/2040 at 61bps, target 45bps
- NOTE: SocGen recommend long 2038 OAT vs bund 2037
- NOTE: Morgan Stanley recommend 10s30s OAT flatteners vs Germany; long 30Y OAT vs Germany
Source: BFW (Bloomberg First Word)
People
Nishay Patel (UBS Global Asset Management Japan Ltd)
To de-activate this alert, click here
UUID: 7947283