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J.P.Morgan Initiate A Couple Of Flattener Plays

US TSYS

J.P.Morgan “see compelling opportunities along the curve, particularly as we’ve now exited the illiquid summer period which should allow for some normalization in dispersions along the Treasury curve. In particular, we see opportunities further out the curve as off-the-runs maturing in 2046 appear cheap relative to more recent issues.”

  • They enter 10-/30-Year flatteners via Aug ‘32s and Aug ‘52s, at a spread of 13.3bp.
  • They also initiate Feb ‘46/May ‘51 level-neutral flatteners (100% vs.87% weighting).
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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