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J.P.Morgan Recommend 7s/10s Flatteners

JGBS

J.P.Morgan note that “foreign investors’ positioning as of the week ended December 10 shows that they had the largest net long position in JGB futures since late 2019. Given U.S. Tsy rates movements, they likely built up long positions again last week. As with the recent flattening of the 5s/7s JGB curve, we believe that the steepening of the 7s/10s JGB curve is overdone. Therefore, we initiate a flattener on the 7s/10s JGB curve.”

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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