HALISTER1: Receive EUR 2s5s10s Swap Fly 3Y Forward Targeting -40bps: BNP

Receive EUR 2s5s10s Swap Fly 3Y Forward Targeting -40bps: BNP

(Bloomberg) -- Receive EUR 2s5s10s swap fly 3y forward targeting -40bps as new long-term ZIRP trade, BNP Paribas strategist Eric Oynoyan writes in e-mailed comments.
  • Expect more dovish ECB following the negative impact of U.K. Brexit vote
  • Fed normalization to support the 5y on the fly and very attractive 1y roll/vol ratio for 3y fwd
  • Add on any move to -3bp, stop +3bp
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Eric Oynoyan (BNP Paribas SA)

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