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SocGen Look For Further SSA Outperformance Vs. EGBs & Swap Spread Tightening

BONDS

Societe Generale expect “a further narrowing of swap spreads due to ECB balance sheet normalisation and the start of rate cuts later this year.”

  • “As a result, we expect SSAs to outperform govies a bit more. So, we still overweight SSAs vs govies and favour short-dated maturities for carry.”
  • “EU long-dated bonds are starting to look cheap vs swaps. To position for a correction at the long-end of the EU curve, we tactically buy EU 30y vs OAT 30y.”
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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