In a market where the key issue is no longer risk-taking but yield management, JPMorgan is repositioning itself against Greek government bonds, recognizing the convergence path that has already been taken. In its latest Global Fixed Income Markets Weekly, the US house reflects a more cautious stance, recommending a profit-taking overweight position in the 10-year Greek bond versus Spain, as it believes the relative advantage has been largely built into prices.

This approach does not represent a negative review for Greece, but is part of a broader strategy for the Eurozone, where JPMorgan believes that catalysts that could lead to a new, sharp shift in the yield curve are absent. The house believes that the European Central Bank remains on hold in the near term, with markets moving more within range and focusing on carry and relative value strategies.