Trade out of 3-4 year Bonos into Cédulas, Barclays say

Following the June 5 ECB announcement Bonos have rallied strongly, while Cédulas have reacted to a lesser extent, leaving clear performance potential, a Barclays research note published on Thursday argues. But what is nice in theory is more difficult in practice, traders said — large blocks of Cédulas are difficult to source without pushing up prices.