Goldman Sachs note that "long-end.........>

EGB FLOWS: Goldman Sachs note that "long-end inflation forwards continue to

creep higher in Europe, outperforming those in the US. And despite the recent

increase in the front-end (in line with our long 2y HICP recommendation), the

HICP curve remains steep relative to pre-COVID levels. We estimate that most of

the steepening vs pre-COVID, such as in the 2s10s HICP curve, has been driven by

shifts in inflation expectations, rather than shifts in the inflation premium.

Front-end expectations remain depressed relative to the long-end, which is

reasonable given ongoing cyclical risks. However, with longer dated forwards

such as 10y10y HICP back to levels prevailing in 2H 2019, it is unlikely that

long-end inflation expectations can rise much further without an increase in

inflation fixings. As a result, we are shifting our long 2y HICP recommendation

into inflation curve flatteners, such as short 10y10y vs long 2y2y HICP at 74bp,

targeting 55bp with a stop of 90bp."