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Morgan Stanley Recommend Long RXV4 132.5/131.5 put spread

EGB OPTIONS

Late on Friday Morgan Stanley recommended buying the RXV4 132.5/131.5 put spread at 23.5.

  • They suggested that “if economic data continue to point toward a soft landing, the expected path for ECB policy will need to be repriced higher. Additionally, the cheapening on the put skew makes the expression attractive in our view.”
  • They also point to bearish Bund seasonal patterns into mid-September, long positioning/low outright yield levels in broader duration and a slight dislocation vs. their “fair value” estimates.
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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