VIEW: Late Friday saw Goldman Sachs...........>

BONDS: VIEW: Late Friday saw Goldman Sachs recommend adding "10y UST-bund yield

spread wideners. While we expect a widening of the spread, we do not believe it

is the start of a trend, but rather a resetting to a modestly higher level. Much

of the move is likely to come from the US leg, though we prefer the spread to an

outright short of 10y US yields as it offers hedged exposure in the event we are

wrong on our recovery outlook. The more significant structural shifts in this

cross-border spread are likely to be driven by policy rate expectation

differentials-and here, the ECB is more open to taking the policy rate lower

from current levels, while the Fed is more likely to achieve liftoff earlier

given the stronger inflation outlook over the medium term."