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NatWest analysts John Briggs,......>

US TSYS/RESEARCH
US TSYS/RESEARCH: NatWest analysts John Briggs, Brian Daingerfield and Blake
Gwinn said on Tsys direction that "we have turned neutral on duration, from
bullish. We are wary of taking too much from market moves in holiday dampened
markets."
- They said on the Tsys curve that "we see more corrective steepening ahead."
- They added that "we are long 5s on the curve, as the belly looks cheap in our
view."
- Meanwhile on TIPS, they are "constructive on inflation breakevens, but would
wait to seek entry for a pullback to the 1.65%-1.75% area."

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