Wells Fargo's Boris Rjavinski......>

US TSYS/RESEARCH: Wells Fargo's Boris Rjavinski and Mike Schumacher add on Tsys

that "curves in the long end have traded in a tight range awaiting catalyst for

a directional move. Asset-liability hedges should opportunistically add exposure

if curves steepen. Further developments on fiscal stimulus, inflation, and an

increase in government borrowing may dislodge curves in the long end." 

- They added on TIPS that "TIPS breakevens remain in limbo. Some of the

off-the-runs in the 10y sector seemed to benefit from the new 10y issue.

Front-end breakevens look like an inexpensive option on higher fuel prices. We

remain in a defensive 5/30 breakeven steepener."