*** TD Securities addressing......>

FED FUNDS FUTURES: *** TD Securities addressing today's rally in 2021 FF futures

pricing in negative rates (strip still trading +0.045 to +0.060 currently vs.

+0.070 high). TD advising customers to fade the rally as move NOT "justified by

fundamentals as FOMC members have repeatedly stated that they do not expect to

take rates negative." Markets my be experiencing "a repositioning or short

squeeze" much like what happened in oil futures recently serial markets traded

deeply negative. "Even in a more dire economic scenario, the Fed would likely

favor YCC or forward guidance rather than negative rates (which affect money

funds and banks)" TD said, and expect the "Fed to push back against negative

rates in upcoming remarks." TD looks to sell FFN1 at 100.035 (sector had tapped

100.045 earlier, +0.070 on day).