UBS expects the yield spread between U.S. Treasuries and German bonds to narrow in 10 years.

Jin10 data reported on August 5th that UBS strategists stated in a report that the bank is buying 10-year U.S. Treasuries/German bonds, betting that economic stagnation will push down U.S. Treasury yields. When UBS entered the market, the yield spread between 10-year U.S. Treasuries and 10-year German bonds was 157 basis points, with a target of reducing it to 135 basis points. UBS also expects the growth gap between the U.S. and the Eurozone to narrow. They stated: "The threshold for the European Central Bank to cut interest rates in September seems very high, which may also help the trade."

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