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JPM recommend long Bobl vs short 5y UST

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  • JP Morgan "see increasing risk of ECB turning less hawkish in the near-term and toning down its rhetoric... given increasing macro uncertainty on back of Russia escalation... the most recent Fed commentary indicate that the latest geopolitical developments are unlikely to have any impact on the path of monetary policy over the near term."
  • On the back of this JPM "Open long €100mn Bobl Apr27 vs. short $121.7mn UST Jan27 @ 190.0bp. 3M carry: -5.0bp and 3M slide: 1.0bp."

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