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J.P.Morgan Recommend 5-/20-Year Flatteners

US TSYS

Late on Friday J.P.Morgan recommended initiating 5-/20-Year flatteners, suggesting that “the curve looks too steep adjusted for the level of front-end yields. The 20-Year sector has recently underperformed and mispricing of the 5s/20s curve more than offsets the negative carry of this position.” They entered the position at 40.1bp. One-month weighted carry is -3bp and roll is 0bp.

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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