J.P.Morgan Like 5s/30s Gilt Flatteners

Late Friday saw J.P.Morgan note that they "expect 5s/30s and 10s/30s to be driven more by 30Y yields and with the global backdrop of further fiscal support fading and the potential for increased BoE QE in the coming months we recommend entering 5s/30s gilt curve flatteners. We acknowledge that increased QE is a consensus view but the lack of large fiscal delivery this week from the Chancellor indicates a high bar for the government to significantly increase fiscal stimulus in our view and we think the long end can further unwind any increased fiscal stimulus expectations. In addition further syndicated supply at the long end of the conventional curve is unlikely for the remainder of this year we see cope for the long end to outperform. We enter 5s/30s gilt curve flatteners, via short GBP100mn in gilt 0FE25 vs. buying GBP16.5mn in gilt 1T49 at 81.6bp."