Halister News

(Bloomberg) -- Correspondence between New York Fed’s ACM term premium and 5/10/30 butterfly shows that outperformance of 10s on curve “has to do with the fact that markets still aren’t assigning a high probability to a continued series of hikes this year,” BMO strategist Aaron Kohli says in note.

• “With the modeled term premium series now at an all-time low, selling 10s on curve makes more sense from a longer- term perspective as well as near- to mid-term horizon”