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Morgan Stanley Like Long 10-Year IGB Position

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Morgan Stanley remain "bullish on IGBs structurally as the market is still underpricing the index inclusion prospect. We believe that some investors could switch out of swap trades into cash bond trades on the back of the index inclusion. Following the recent sell-off, the curve could flatten on the back of a less hawkish RBI."

  • They recommend entering a long 10-Year IGB position at 6.30%, with a target of 5.90% and a stop at 6.50%.
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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