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Morgan Stanley Recommend Rotating 20-/40-Year Flattener Into Long 40-Year Outright

JGBS

Morgan Stanley have recommended rotating an existing 20-/40-Year JGB flattener trade into an outright tactical long in 40-Year JGBs. They note that “with little prospect of drastic policy changes anytime soon under a new BoJ governor, we believe that the long-end JGBs continue to be supported by lifers as well as pension funds' rebalancing demand. The risk of this trade is little demand for Japanese lifers to chase the yield lower.”

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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