JGB Sell Off No Reason for Bund Investors to Be Spooked: RBS
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- The JGB/bund spread is back at low single digit, a level which preceded a sharp selloff in bunds in early 2015 but the ECB backstop means this time is different, RBS analysts say.
Alert: HALISTER1- Repeat -0.40% target for 10Y bunds; with inflation keeping ECB easing in play expect supply/demand dynamics to remain center stage
- Supply will be dwarfed by QE flows in all markets so favor peripheral spread tighteners
- NOTE: A jump of ~30bps in JGB yields back to January levels would bring 10Y USTs toward 1.70%-1.75%, UBS says
Source: BFW (Bloomberg First Word)
To de-activate this alert, click here
UUID: 7947283