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Rates markets expected to eventually self-correct - RBS

FXStreet (Łódź) - William O'Donnell from RBS believes that the divergence in rates between the US and its trading partners should not last much longer.

Key quotes

"I believe that rates markets will eventually self-correct because global investors all tell me that they welcome, or even pray for, higher yields given the dearth of supply in safe-haven markets (the "stock" view, if you will) and their persistent need to defease liabilities, appease depositors and find carry or appropriately priced risk-adjusted returns."

"Our market is globally cheap no matter what the Fed thinks and this is why I refuse to join those who see nothing but higher yields ahead."

"Dips should be bought, I just don't yet know when or where. So I stay riveted to charts and to our flows for signs that this dot-correction has played out."

Draghi could comment on TLTRO on Monday - FXStreet

FXStreet Chief Analyst Valeria Bednarik points to ECB head Mario Draghi's testimony before the European Parliament's Economic and Monetary Committee on Monday as one of the most important events next week.
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