Treasury Complex Pt.2

Here are the bloomberg Story comments regarding the curve

Weak inflation and the end of the hiking cycle spells
steepener: “With 2s/10s up against this year’s steeps, we are
biased for a breakout and the commencement of the cyclical
resteepening of this section of the curve”

* Bank of America (Bruno Braizinha, Mark Cabana and others,
April 26 note)
** “2s10s curve could steepen to 40bps with a recovery of data
in Q2 and a steady Fed;” expect 10-40bps range for now
** Team favors 10s30s steepeners; long 30-yr TIPS

Barclays (Rajiv Setia, Anshul Pradhan, Amrut Nashikkar, in
note)
** Expects 2s10s slope to remain positive “as a dovish Fed in
the face of modestly above-trend economy should lead to some
build-up of term premium;” remaining neutral on duration, but
“we see scope for a modest move higher in yields across the
curve”




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