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JPM Wary Of Further Drift Higher In Long End Yields

US TSYS

J.P.Morgan write “the next employment report is still more than 2 weeks away. This may mean Fed expectations stabilise over the near term, but we are concerned long-term yields could continue to drift higher: with the market-implied first cut still almost 6 months away, it may take higher yields and a less inverted curve to incentivize end-users to add duration.”

  • “Hence, we remain neutral on duration, even though yields sit near their highest levels in 5+ months and Treasuries appear cheap on our fair-value model.”
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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