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Societe Generale: UK gilts to underperform further

Quotes from Societe Generale Position for 5s10s curve steepening as political risks support the front-end safe-haven bidwhile risk premium is inserted into 10Y. Position for wider 10Y breakevens. Linkers should protect f…

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Quotes from Societe Generale

  • Position for 5s10s curve steepening as political risks support the front-end safe-haven bidwhile risk premium is inserted into 10Y.

  • Position for wider 10Y breakevens. Linkers should protect from higher inflation if the GBPweakens.

  • Current entry levels are unattractive but we view any tightening as an opportunity to sell 10Ygilts versus Bunds.

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