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(Z1) Corrective Cycle Still In Play


2Y, 3Y Midcurve Put Play


Effective Fed Funds Rate

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Westpac note that they "do not have much near term conviction on outright direction at present. While we cited the growing issues around COVID, the bullish re-pricing has been in place for a number of weeks now, as global shorts were squeezed and covered, while central bank expectations shifted such that there is now less fear that they will lose control of inflation. We suspect that risk positions have been significantly pared back, however we still believe that the consensus is for higher yields into year end. The difficulty is in either holding shorts given current themes, or in establishing the timing to re-enter bear steepeners. We don't think the triggers will be evident anytime soon."