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US rates review: Barclays

Barclays notes:Long-dated forward Treasury yields are becoming attractive in the post-crisis world of subdued growth where the fair value of term premia is also arguably still negative, given the prospects for low inflat…

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Barclays notes:

Long-dated forward Treasury yields are becoming attractive in the post-crisis world of subdued growth where the fair value of term premia is also arguably still negative, given the prospects for low inflation and ongoing expansion of central bank balance sheets. 

Further positioning appears much cleaner now than it was in mid-April prior to the selloff. We maintain our recommendation of selling high strike payers on 30y tails. 

Global bond markets were largely unchanged during the week with 10y yields in the US and Germany stabilizing around 2.2% and 0.6%, respectively, amid weaker-than-expected data and dovish comments from the Fed and the ECB. 

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