El Oráculo · T31Y7: LECAP 84 bp cheap vs curve
Machine translation of the Spanish original. Read the original
The curve model flags T31Y7 as cheap with a residual of 84.78 bp compared to its fixed rate peers, the largest visible dislocation in today's bond universe. With positive momentum of +2.5% over 20d and the price just -0.31% off its 60d high, selling pressure does not explain the dislocation — a pricing lag in a relatively less liquid instrument is more likely. Convergence to curve fair value should materialize in 3-5 trading sessions as market makers adjust.
El Oráculo
Tuesday, October 27, 2026
| T31Y7 | LECAP |
■DISLOCATED YIELD: CHEAP 84 BP VS FIXED RATE CURVE
Target +0.7% · 5 sessions
|
Conf. 6/10 |
Prob. 58% |
Target +0.7% |
Stop -0.5% |
T31Y7: LECAP 84 bp cheap vs curve
Key takeaway
T31Y7 cheap 84.78 bp vs curve; yield 30.27% annualized with carry 0.022%/day
The thesis
Context
This is not an investment recommendation. The information published is general and does not take into account individual situations. Trading in financial markets involves risk of loss. Consult with a registered financial advisor before making decisions (Law 26,831).
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