Halister News

(Bloomberg) -- UST 5s30s steepener recommended on July 27 at ~108bp anticipated it would be profitable into Thursday’s $15b 30Y auction, as “curve has tended to steepen by an average of 4.4bp prior to 30-year bond auctions,” JPMorgan strategists led by Jay Barry say in Aug. 10 note; 5s30s curve closed Thursday at a 100bp, lowest since July 10, flattening driven in part by commodity price weakness.

• JPM also exited its July 20 recommendation to fade flattening of 3m6m bill curve driven by speculation that mid-October maturing bills faced delayed payment risk from federal debt ceiling; “these bills have fully reversed their cheapening relative to surrounding issues since then”

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Joanna Ossinger