Trial now

opening calls


SAGBs Pause for Breath, 10 Y 30Y Yields Run Into Support


Bear Flag Formation

US TSYS: J.P.Morgan note that "there has been a vast performance difference
between equities and fixed income in Q220: the S&P 500 has risen more than 20%
while the GABI-US (our aggregate fixed income index) has rallied just 2.7%.
Naturally, this performance differential has led investors to ask whether there
should be rebalancing out of equities and into fixed income as quarter-end
approaches. When equities have outperformed the GABI-US by more than 5%-pts on
the quarter 10-year yields tend to decline by an average of 4bp in the week
leading up to quarter-end and continue modestly lower over the following week.
Although 10-year yields have already declined ~5bp over the last five trading
sessions, it appears there is a risk for yields to move modestly lower over the
near term. Nonetheless, our medium-term outlook remains unchanged, and we hold
5s/30s steepeners."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |