Dubai PR Network, Online Press Release from Dubai and Middle East
 
Business, Banking and Investments(Banking & Investments)
Filter PR by
  
BofA: Global Rates Weekly: Wave Theory
 

Global Rates Weekly: Wave theory

BofA Global Research Media Relations

 

Refer to important disclosures at the end of this report (see link below). Please note, you may quote directly from this research report solely in your reporting as a member of the media; however all quotes must be cited as having come from a BofA Global Research report. All other copying, redistribution, retransmission, republication and any other unauthorized dissemination or use of the contents of the report or the link thereto are prohibited. If you are interested in interviewing an analyst, your request must be directed to Research Communications & Media Relations.

Global Rates Weekly

  Global Rates Weekly: Wave theory


•  Coronavirus concerns raise macro risk & curve flattening pressure in the US. YCC may see belly outperformance, steeper 10s30s
•  In the EU we recommend 10y swap spread widener, with a balanced outlook for 30y spreads. We remain bullish on front-end rates
•  In AU uncertainty on supply & balance sheet could cheapen 10s on a fly. Italy linker iotas look cheap after recent tightening
The View: we know we don't know what we don't know
We do not know how to assess US state level virus data and the risk of a widespread resurgence of Covid-19 outside the tri-state area. We do know that irrespective of government guidelines, consumer behavior will adjust regardless, which means that we are increasingly concerned about the sustainability of the recovery in the US.
 ─ R. Preusser
Rates: risk of resurgence
US: Coronavirus concerns raise macro risk & curve flattening pressure in the US. YCC may see belly outperformance, steeper 10s30s.
EU: We examine recent dynamics on the swap spread curve. We now recommend a 10y swap spread widener and discuss the rather balanced outlook for 30y spreads.
UK: Post-BoE Gilt curve steepening a positioning wash-out, not a theme. Effective long end supply still light through H2. We regard it as a flattener opportunity.
JY: Interest-bearing JGB trades by domestic private-sector institutions fell to a record low of ¥11.7trn in May. Needing collateral, city banks were big net buyers of TBs.
AU: Uncertainty on both the supply outlook and RBA balance sheet expansion should cheapen 10yr bonds on a 5s-10s-20s fly and support narrow swap spreads.
 ─ Braizinha, Cabana, Axel, Salim, Satko, Capleton, Ohsaki, Sam, Morriss
Front end: prime fund closures
US: Prime fund closures were announced by two large asset managers due to market stress. Wider FRA-OIS would likely occur only if larger prime funds started to liquidate
EU: The magnitude of decline across front-end EUR rates on the TLTRO III.4 settlement date has been limited, but we prefer to maintain a bullish stance on front-end EUR rates
 ─ M. Cabana, O. Lima, R. Man
Volatility: accumulation of risk
We see an accumulation of risk in end '20. Elections may be market positive, but perhaps offset by global pandemic pressures. We continue to favor hedging the positive side of the range of outcomes.
 ─ B. Braizinha, S. Salim
Inflation: 80/20 rule points to old favourite trade
EU: Italy linker iotas look cheap after the recent Italy tightening. This recalls a credit barbell strategy we have suggested before, as benign summer seasonals approach
 ─ M. Capleton
 


Posted by : Dubai PR Network Editorial Team
Viewed 2263 times
PR Category : Banking & Investments
Posted on : Sunday, June 28, 2020  12:02:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : The Heart of Europe Strengthens Sales Team With the Appointm...
Next Story : Abu Dhabi Securities Exchange (ADX) Introduces Region's Firs...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Make Up for Ever Introduces for the First Time Its New Active Care-in-foundation to Revive... [6326-Views]
HONOR 2020 H1 Business Achievements in International Markets [4022-Views]
Here's Why A Silicone Cleansing Brush Champions Other Cleansing Tools and Techniques [3682-Views]
Get Your No-MakeUp MakeUp Look With Hourglass [3563-Views]
Samsung Launches Galaxy Watch3 and Galaxy Buds Live [3325-Views]
Panasonic Jaguar Racing Head to Berlin for a Lockdown Showdown [3264-Views]
Save up to AED 25,000 on Pre-Owned Lexus Cars with Al-Futtaim Auto Fest [3120-Views]
Safe Start-up of Unit 1 of Barakah Nuclear Energy Plant Successfully Achieved [3026-Views]
Parmigiani Fleurier Tonda 1950 Tourbillon [2993-Views]
Sony Middle East & Africa Announces ‘Ready for PlayStation®5' for current BRAVIA™ TVs [2595-Views]
Introducing the New Omega Constellation Gents' Collection' [2403-Views]
Lacoste Launches the Roland - Garros Eyewear Collection [2390-Views]
UAE Team Emirates Back to Winning Ways [2345-Views]
Pre-Orders for Samsung's Galaxy Note20 and Galaxy Note20 Ultra Now Open in the UAE [2288-Views]
Up to €500,000 to Support the Most Promising Innovators: The Agrofood BIC Accelerator Issu... [2202-Views]
Jafza Sets a New Benchmark With ‘collaboration for Safe and Sustainable Growth' Webinar' [2173-Views]
The Last Few Weeks of Dubai Shopping Mall Group's Summer Promotion [2050-Views]
The Best Just Got Better – Sony Middle East & Africa Announces WH-1000XM4 Industry-Leading... [2034-Views]
Kia Motors Collects Over 2,000 Pairs of Football Boots via UEFA Europa League Trophy Tour ... [2021-Views]
Cebu Pacific Advisory: Suspension of Domestic Passenger Flights to/from Manila – Aug 4 to ... [2005-Views]
Dubai Sports Council and Ski Dubai to Host One of the World's First Snow Sports Competitio... [1972-Views]
Malabar Gold & Diamonds Opens 2 New Showrooms as Part of Its Global Expansion Plan [1870-Views]
New Month, New Goals [1857-Views]
Face Shields Now Required for Cebu Pacific Passengers [1820-Views]
Post-COVID Travel is Set to Become Smarter. Here's How. [1812-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories