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Harvinder Sian at Citi is bullish on Bunds....>

BUNDS
BUNDS: Harvinder Sian at Citi is bullish on Bunds writing that "the arithmetic
on FX hedged yields which suggest JPY (and USD) investors will favor European
bonds".
- Aside from FX hedged justification the tactical bullishness is driven by "low
ongoing inflation (Sweden serves as a timely reminder); peaky lead indicators;
and a market that has not even recognized cooling in global growth. Finally,
positioning looks extended"
- Citi are particularly negative on inflation and are non-consensus in that they
believe that the global inflation scare should be short-lived.

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