May 27, 2024 08:49 GMT
Natixis: EU Green Feb-43: Attractive Entry Level Ahead Of Auction
BONDS
Natixis note that “since UK CPI and U.S. FOMC meeting minutes, investors have been repricing Fed and ECB scenarios, triggering a bear flattening move on EUR curves.”
- “EU bonds have underperformed in the AAA space and against France, whose curve benefits from prime liquidity even in long end maturities.”
- They flag potential EU bond index inclusion, EGB cash flow matters, carry and roll, micro fly RV and asset swap cheapening as supportive factors for Green EU Feb-43, identifying prevailing levels as attractive ahead of today’s auction.
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