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Morgan Stanley: Receive EUR 5y5y Swap vs. EUR 20y5y Swap

EGBS

Late on Friday Morgan Stanley recommended receiving EUR 5y5y swap (vs. 6m) vs. EUR 20y5y swap (vs. 6m) at -80bp. They noted that “the recent flattening of 10s30s offers an attractive entry point for steepeners. The macro, historical analysis, and valuations all point to steeper curves. Risks to the trade include a spike in equity volatility or sustained receiving flows in the 30y sector of the curve.”

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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