e is clarity about the directional implications. We highlight four such opportunities in this section, specifically: 1) US deregulation; 2) return of Euro zone risk premia; 3) China- linked commodity prices weakening sharply; and 4) Japan’s yield curve targeting triggering a steeper curve and volatility incr

ield spreads 36 UBS Duration preference: neutral Recommendations Tactical (6 months) e Long term Bund yields would fall lower, in case of rising Euro zone break up probability. In contrast if Germany would need to support the periphery further, Bund yields would rise. We expect the market to oscillate b