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Priya Misra and Pooja Kumra at TD recommend...>

BONDS
BONDS: Priya Misra and Pooja Kumra at TD recommend fading the recent Bund-Gilt
spread widening.
- According to TD, the rise in Treasury yields is overdone but "a global pick-up
in growth and inflation is a risk to going long duration. But in that situation
the ECB and BOE should reduce some policy accommodation. Some ECB normalization
is priced in, thus we prefer US-UK spread compression." - TD suggests a long 10y
USTs against Gilts at 125bp, "Our target is at 100bp and the stop is set at
140bp."

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