Halister News

(Bloomberg) -- UST yields, while historically low, “continue to look high” in a global context, and intermediate yields “still have a lot of room to fall” if U.S. is on verge of a slowdown, Barclays strategists led by Rajiv Setia say in Feb. 25 note.

• “Pessimism reflected in financial markets globally also seems to be filtering through into the US outlook”
• Large selloff seems unlikely unless “long-list of risks” (higher energy prices, reduced China concerns, high yield, and negative perceptions on banks) dissipate
• Correlation across asset classes is high and “given our cautiousness around risky assets, we remain neutral on outright duration”
• Buy 1x2 6m*10y payer spreads as they offer an “attractive risk reward profile”