JPM Recommend 10-Year Spread Tighteners & 3s/7s Spread Curve Flatteners

J.P.Morgan issued a couple of swap spread trade recommendations late on Friday:

• Firstly, they recommended initiating 10-Year swap spread narrowers, suggesting that “term funding premium is near its recent low. We expect term funding premium to drift higher over the medium term on the back of continuing QT and elevated duration supply. Lastly, fair value considerations suggest that 10-year spreads are currently trading above the fitted term structure.”
• They also recommended initiating 3s/7s swap spread curve flatteners, with that “curve at the steep end of its recent range. Also, an upward bias in zero duration spreads as well as term funding premium, should weigh.”