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Citi Sketch Out Their Post-ECB Playbook

EGBS

Citi write “a surprisingly dovish ECB left April cuts on the table and adds weight to this week’s €HICP releases.”

  • “The ECB also adds to our confidence that the Bund sell-off is likely running out of steam, especially given the bullish signal from 5y5y HICP.”
  • “In € front-end, we recommend chasing carry in 1s2s conditional bear flatteners.”
  • “In EGBs, we recommend 15s30s Bono flatteners vs OATs given diverging debt/GDP ratios and 5s10s BTP flatteners to position for a reversal in temporary shifts in beta.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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