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Strategists at Citi have initiated a new.......>

EGBS
EGBS: Strategists at Citi have initiated a new trade today in EUR swaps "receive
the belly of 3yr fwd EUR 5s10s30s." They believe that the risks for ECB forwards
is for more rate hikes to be priced in, which should steepen the 2s5s but
flatten the 5s30s.
- For their new trade (3yr fwd EUR 5s10s30s) Citi believes "Forward cheapening
is unlikely to be realized on any 10yr sell-off and the trade also rolls
favorably. Current level is 20bps and target +5bps. Risk is a commitment by the
ECB not to re-calibrate policy as growth ensues."

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