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Natixis: Short 5s30s OATs Vs. Bunds

EGBS

Natixis recommend selling the OATs Bunds 5s30s box at 55bp, targeting 48bp, with a stop set at 58.5bp.

  • They suggest that “France could provide a market friendly coalition government with some concession made to far-right RN to secure survival and adopt a sensible budget for 2025.”
  • “More long-term challenges for the German economy will probably make policymakers and opinion reconsider aversion for public debt.”
  • Finally, they suggest that “the negative carry of the position should be more than compensated by the mark-to-market of the position.”
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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