HALISTER1: Barclays Enter Tactical Long UST 10Y, Citing Policy Uncertainty

Barclays Enter Tactical Long UST 10Y, Citing Policy Uncertainty

(Bloomberg) -- Bank recommends going long 10Y Treasuries “tactically’ as policy uncertainty remains elevated, say strategists including Rajiv Setia.
  • Long duration position established Thursday at 2.52% yield
  • Rationale includes complacency in markets given the range of outcomes amid policy uncertainty, while medium/long-term Fed expectations and term premia should be contained
  • Also acknowledge that boosts to growth through fiscal expansion risk pushing up short rates over the next 1-2 years; medium-term fed funds outlook should be capped as investors foresee some possibility of expansion ending
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Rajiv Setia (Barclays PLC)

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