JPM's Breakeven View Leads To Them Maintaining 5y5y Infl Swap Long

J.P.Morgan note that "10-year real yields have risen 16bp over the past week, though they remain well below their local peak observed in November. Importantly, we think the recent weakness in front-end to intermediate TIPS represents a partial reversal of their very strong performance over previous months: the residual on our 10-year breakeven fair value model has declined from 18bp a week ago to 6bp currently, within the standard error of our model for the first time in nearly two months. Thus, with fundamentals still supportive, we do not expect this weakness to persist, and we maintain 5y5y inflation swap longs."