Intriguing RV graphs: Middle East situation and super-long JGB investment strategies
Key points
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Providing super-long JGB investment strategies to consider amid Middle East tensions; strategies depending on sense of yield direction are difficult to execute
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RV strategies utilizing super-long JGB yield distortions are worth considering; in particular, 15-year sector distortions have lower correlations with sense of yield direction
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Butterfly spread with 15-year body has generally remained within expected range in recent years; fluctuations caused by situation in Middle East could present entry opportunities