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J.P. Morgan 10s Look Cheap, 10s30s Look Steep, But Momentum = Caution

US TSYS

J.P.Morgan note that "10-year Treasuries are somewhat cheap and the 10s/30s curve is somewhat steep relative to fundamental drivers at current levels. The Treasury market does not appear on the verge of a large sell off and long-duration supply has been well digested, all pointing to risks of lower yields over the near term. However, we are respectful of the momentum of this trade and remain on the sidelines for the time being."

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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