HALISTER1: Sell Eurodollars, as Stage Is Set for ‘Mild Selloff’: Citi

Sell Eurodollars, as Stage Is Set for ‘Mild Selloff’: Citi

(Bloomberg) -- Agreement to suspend U.S. debt ceiling until December means “the stage is set for a mild selloff in rates,” with the new deadline “acting as a barrier against any large selloffs,” Citi strategist Jason Williams says in note.
  • Recommend short in EDH9 at 1.61%, targeting 1.85%, stop at 1.45%
  • Red eurodollars “can reprice quickly on a change in sentiment”
  • With fed funds pricing in next full hike by April 2019, “risk is now for the market to price in a somewhat higher pace of fed funds increases” based on economic fundamentals
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 Greg Chang

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jason Williams (Citigroup Inc)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283