USD Swap Spread Rises on Growth Optimism, Buy 5-Yr UST: Mizuho
Source: BFW (Bloomberg First Word)
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Hiroko Iwaki (Mizuho Securities Co Ltd)
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UUID: 7947283
(Bloomberg) -- Optimism for faster U.S. economic growth and higher rates is boosting demand for receiving floating rates, driving 10-year USD swap spread higher, says Hiroko Iwaki, senior foreign bond strategist at Mizuho Securities in Tokyo.
Alert: HALISTER1- Adds, however, doubtful as to whether the “rosy” outlook will materialize given the swap spread remains below zero
- Sees it unlikely at the moment that Fed will raise rate more than twice in 2017
- Favors buying Treasury 5-year notes on expectations that yields will reprice Fed rate prospects
- NOTE: 10-year swap spread touched -7.75bps on Friday, highest since July 6
Source: BFW (Bloomberg First Word)
People
Hiroko Iwaki (Mizuho Securities Co Ltd)
To de-activate this alert, click here
UUID: 7947283