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RBC Go Short IBG3

STIR

RBC note that “at this juncture, and particularly given the acceleration in stickier components of CPI we sell Feb IB cash futures (IBG3) at 96.755. We think it makes sense to sell Feb IBs so long as there is < 25bp priced in given the market could well price some chance of a +40/50bp. Hence there should be limited downside to the trade, and potentially 5-10bp of upside.”

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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