Free Trial

VIEW: J.P.Morgan "take a look at the...>

- Bonds & Currency News | Market News" >
AUSSIE BONDS: VIEW: J.P.Morgan "take a look at the AUD 3s/s10s par curve. Over a
longer term horizon, we note that the curve has broken a key trendline this
year. This biases us towards a steeper curve over the medium term. But near
term, our model suggests that the curve is a little steep to fair value (around
one standard deviation). We would look to fade any further steepening to the
+75bp level; this would represent a two-sigma deviation assuming no material
change in fair value. Moreover, our colleagues in USD and EUR rates strategy see
fundamental reasons for steeper curves in US and European rates markets; and
while the beta of moves in the AUD 3s/10s curve to global curves is around 0.3,
we note that flatteners appear to be the more widely subscribed position
- Bonds & Currency News | Market News" >
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.