HALISTER1: Sell OAT May 2045 ASW on Negative Seasonal Patterns: BNP

Sell OAT May 2045 ASW on Negative Seasonal Patterns: BNP

(Bloomberg) -- OAT ASW seasonal patterns suggest a cheapening in second half of August, especially in the OAT 30y bucket, BNP Paribas strategist Eric Oynoyan writes in client note.
  • Recent market positioning and valuation vs bund are not supportive for OATs in the near term
  • OATs have failed to richen further in spite of firmer risk assets until late July
  • Sell OAT May 2045 ASW at 16bp, add on a move to 11bp; target +25/28bp, stop 8bp
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Eric Oynoyan (BNP Paribas SA)

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