Halister News

--DEREK WALLBANK

--GREG SULLIVAN

(Bloomberg) -- Better to be long 10Y USTs than short as "equity markets are being a little too euphoric on what delivery you’re going to get from the Trump administration," Kumar Palghat, global head of fixed income at Janus Henderson Investors, said in an interview on Bloomberg Television.

• Fixed income is most mispriced market because of central-bank intervention; would recommend trading range on 10Y USTs, "somewhere between 2.10% and 2.45%"
• On Fed raising rates next week: "I don’t think it’s unusual for them to go but I would think it’s one and done this year"
• "In order to buy 10-year Treasuries, in order to stay fully invested in the fixed-income market, you have to believe that one and done is this year and then one for next year," Scott Thiel, deputy chief investment officer of fixed income at BlackRock said during same panel on Bloomberg Television. 
  • "I get a little concerned about having exposure to Treasury rates even in the kind of global environment we’re in, simply because the next thing on the radar screen, the next surprise is if the Fed walks the market back from this pricing out they’ve done," Thiel said. "And that to me is a significant risk"

To contact the reporter on this story: Alexandria Arnold in Seattle at abaca3@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Mark Tannenbaum