Free Trial

NAB Formally Recommend AU/U.S. 10-Year Tighteners

AUSSIE BONDS

NAB note that "given the wide spread over our fair value estimate we recommend buying ACGB the Jun '31 vs Feb '31 U.S. Tsys. We target a level of +5bp for the spread and set a stop-loss level of +30bp. The key risk to the trade is that ACGB rates materially underperform if, for example, the U.S. outlook deteriorates materially but the market prices further early tightening from the RBA. Additionally, as recent events have shown, the spread is vulnerable to widening during a volatile selloff, although positioning might be less of an influence going forward than it may have been in initial selloff."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.