ANZ Like Long XM

ANZ think the "recent lift in the 10y UST yield captures the improvement in the data. While the Fed's shift in the inflation target may imply a steeper yield curve in the long-term, a continued sell-off at this point will threaten the recovery - which is the last thing the Fed needs… We can't rule out a further lift in inflation from here. But we think there is a reasonable amount of good news already priced. Therefore, we think there is value in the US long-end. While long-end AUD rates may underperform with a USD rally, we think the long-end of the AUD curve will rally in an absolute sense with these moves. So we like buying 10y ACGBs at current levels. Go long XM at 99.00, with a target at 99.15 and stop at 98.90."