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Danske Bank: Buy Buxl Vs. Swap

BUNDS

Danske Bank write “the 30Y segment on the core and semi-core EGB curves has cheapened significantly during 2023. Furthermore, there is a solid positive carry versus swaps.”

  • “We expect that the cheapness is driven by the supply of 30Y bonds, especially from Germany.”
  • “We expect to see a dramatic decline in the supply of 30Y bonds in 2024.”
  • “We recommend buying the 30Y German benchmark versus swaps.”
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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