HALISTER1: TD Looks to Re-Set UST 10Y Longs After Getting Stopped Out

TD Looks to Re-Set UST 10Y Longs After Getting Stopped Out

(Bloomberg) -- Oct. 7 recommendation to go long UST 10Y at 1.73% hit stop at 1.86% yesterday, however “the global reach for yield is still far from over,” TD strategists Gennadiy Goldberg and Priya Misra write in note.
  • Selloff in global rates has been led by gilts and bunds, “not by a considerable re-pricing” of December Fed rate hike odds which remain near 70%
  • “Yield-starved buyers will step into the fray once the volatile price action subsides,” as central banks won’t be able to reduce accommodation as much as market expects
  • TD continues to recommend long UST 10Y vs bunds based on view that ECB taper fears will weigh on bunds
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Gennadiy Goldberg (TD Securities USA LLC)
Priya Misra (TD Securities USA LLC)

To de-activate this alert, click here

UUID: 7947283