HALISTER1: Fed Speak ‘Clears the Path for Carry Trades’: Credit Agricole

Fed Speak ‘Clears the Path for Carry Trades’: Credit Agricole

(Bloomberg) -- The Fed’s statement this week suggests “few event risks” before the Jackson Hole meeting in August that could cause an “aggressive market repricing towards higher yields,” Credit Agricole analysts write in July 28 note.
  • Statement “clears the path for carry trades over the coming weeks”
  • Expect bid for belly of curve with “attractive carry and rolldown”; maintain “bullish trades” in 10Y and continue to favor 5Y30Y steepeners
  • Next event risk for market is Jackson Hole; ECB President Draghi could discuss monetary policy
To contact the reporter on this story: Anna Windemuth in New York at awindemuth1@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Mark Tannenbaum

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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