Free Trial

J.P.Morgan Recommend OAT 10s30s Steepener Vs. Bunds

EGBS

Late on Friday J.P.Morgan wrote “intermediate OATs are trading ~2bp dear relative to 3Y and 10Y on the credit curve.”

  • “Further out, the 10s/30s credit curve flattened modestly during the tightening move and is now screening almost 2bp too flat vs. level of spreads.”
  • They recommended a tactical 10s/30s France steepener vs. Germany given these “stretched valuations.”
  • They also note that “France remains an active 10Y+ issuer and we expect them to syndicate a new 30Y OAT over coming months.”
  • Natixis issued the same trade recommendation last week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.