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J.P.Morgan Remain Neutral, Look For Cheaper Valuations To Add Duration

US TSYS

J.P.Morgan write “looking ahead, we remained biased to add duration in a move to higher yields: while valuations remain rich and the market continues to price in too much easing in H223 relative to our modal forecast. We think risks are skewed towards lower yields given that tighter credit conditions should reduce the need for significantly more restrictive policy, the trajectory in initial jobless claims has moved higher recently, and the debt ceiling debate is coming into view. Thus, we remain neutral for now and will look for cheaper valuations to add duration “

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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