J.P.Morgan note that "there has been a......>

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."