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/EGB: TD analysts Priya Misra and Pooja.....>

US TSYS
US TSYS: /EGB: TD analysts Priya Misra and Pooja Kumra said on EUR/USD
cross-currency basis that "even though we expect some tightening in basis once
the year end turn is over, we think it would only be temporary. There are two
factors that should drive higher the cost of USD funding in 1H 2018: 1) Pick up
in bill supply after the debt ceiling is raised/suspended and 2) USD
repatriation of overseas profits which should remove some USDs from the credit
markets.
- "We own June FRA/OIS wideners in our model portfolio to position for these
moves," they said. "In addition, we look to put on EUR/USD cross currency basis
wideners on any tightening moves over the next few weeks."

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