HALISTER1: U.S. Yields Rise; May Fall to 2.10% as Optimism Eases: MUFJ-MS

U.S. Yields Rise; May Fall to 2.10% as Optimism Eases: MUFJ-MS

(Bloomberg) -- Yields on Treasury bonds rise across the curve, with 10-year yield up 2bps at 2.56%.
  • Topix of Japanese shares set for first advance in four days, gaining 0.2%; U.S. markets reopen after a three-day weekend, while London remains shut
  • Markets appear to remain in a risk-on environment though there are few investors, says Kenta Inoue, a Tokyo-based senior foreign-bond strategist at Mitsubishi UFJ Morgan Stanley Securities
    • U.S. bond market has completely priced in optimism for Trump’s policies pushing up near-term economic growth
    • Expects doubt to grow, driving 10-year yields to 2.10% by March 31
  • NOTE: Should his forecast turn out to be correct, an investor who buys 10-year notes today would gain 4.7%, according to Bloomberg data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Kenta Inoue (Mitsubishi UFJ Morgan Stanley Securities Co Ltd)

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