RATES: USD Weakness Cuts Both Ways for U.S. Rates, Citi Says
Source: BFW (Bloomberg First Word)
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Jabaz Mathai (Citigroup Inc)
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UUID: 7947283
(Bloomberg) -- USD weakness due to better global growth outlook should cause rates selloff with higher inflation expectations, while USD weakness resulting from “reduced expectation of Fed rate hikes with lower interest rate differentials between the U.S. and the rest of the world” should keep downward pressure on rates, Citi strategists led by Jabaz Mathai say in Feb. 5 note.
Alert: HALISTER1- Recommend staying long 5y on curve, while hedging against a rise in rates, possibly led by oil; recommendations include eurodollar risk reversal (selling midcurve calls on EDH7 vs buying puts) and buying 10y breakevens
Source: BFW (Bloomberg First Word)
People
Jabaz Mathai (Citigroup Inc)
To de-activate this alert, click here
UUID: 7947283