Thursday, September 15, 2011

US Term Structure

A reminder - look to get long (L - S) the US curve. Clients were advised to do so, Sep/13.

This can be done in any number of ways with any number of instruments.

The Fed is expected to sell the curve, become of buyer of the long end, a seller of the short end. This will accomplish nothing of note, is in fact foolish; thus, it is consistent with recent policy.

Still, we want the reverse position ahead of that meeting. Preferable is 2 - 10, but even a longer (S) leg will do.

Robert Craven

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