Natixis Turned More Neutral on Long-End U.S. Treasurys Before Buyback Plan
Dow Jones
Aug 20
0604 GMT - Natixis shifted from bearish to more neutral on the long end of the U.S. Treasury curve even before the Treasury's announcement on Wednesday to increase long-end debt buyback volumes, U.S. rates strategist John Briggs says in a note. That said, while the "mechanical increase" in purchases from a supply-demand perspective is helpful, it is not enough to outweigh the longer-term structural headwinds, he says. "Outside of the long end, we continue to recommend longs in the belly [intermediate maturities], reinforced of late by favorable data and the view from Natixis Economics for a Fed that will remain on extended hold," he says. Natixis recommends longs, but also hedged with a long in five-year inflation, Briggs says.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.