Citi and MFS flag France supply, Fed repricing in rates notes
Citi’s Jamie Searle and Puja Sawant say French OAT issuance timing could support cheapness and note a projected drop in weighted average maturity. MFS’s Benoit Anne says the fixed-income outlook looks brighter on an improved duration backdrop and that Fed repricing may be approaching overpricing.
0555 GMT - Citi's Jamie Searle and Puja Sawant said French government bond issuance will resume next Thursday, with supply likely to be a key factor in keeping OATs cheap. The strategists said issuance may be especially influential early next year. They added that the run-up to the French presidential elections coincides with net cash needs for OATs in January-April equal to 70% of the full-year total. They also expect the weighted average maturity to fall to a decade low.
0534 GMT - Benoit Anne at MFS Investment Management said the outlook for fixed income looks brighter despite recent performance setbacks. The head of market insights said this mainly reflects an improvement in the duration backdrop. He said the market's repricing of Federal Reserve rate policy is now well advanced and may have moved into overpricing. That, he said, may help limit the upside risk to rates from monetary policy.
S. long-end rates appears to have slowed somewhat, although fiscal challenges remain intact. October 09, 2026 05:28 ET (09:28 GMT) The statements in this document shall not be considered an objective or independent explanation of the matters. Please note that this document has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.