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Morgan Stanley Recommend Long 5s On Top Of Existing Steepener Plays

US TSYS

Friday saw Morgan Stanley write “with an FOMC focused on credit concerns and banking system stress, while long-term inflation concerns linger, we see the curve could either twist or bull steepen. The risk is that market concerns normalize and the Fed is forced to hike further.”

  • They recommended entering a long 5-Year Tsy position with yields at 3.60% and a stop set at 3.72% (that comes on top of 2-/30- & 5-/30-Year steepener plays)
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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