HALISTER1: UST 10Y Yields Unlikely to Sustain Move Above 2.50%, TD Says

UST 10Y Yields Unlikely to Sustain Move Above 2.50%, TD Says

(Bloomberg) -- While UST 10Y yield “can sell off a bit further” if John Taylor or Kevin Warsh gets tapped for Fed chair, “we remain long duration” via 5y5y real rates and plan to initiate long nominal 10Y in model portfolio if yield reaches year-end target of 2.50%, TD strategists led by Priya Misra say in note.
  • Market “is much too optimistic on odds of tax reform”
  • TD reinitiates 5s30s flatteners ahead of Nov. 1 refunding announcement, on expectation increases in Treasury supply to fund Fed portfolio runoff will be concentrated in front end
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net To contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net Vivien Lou Chen

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Kevin Warsh (Duquesne Family Office LLC)
Priya Misra (TD Securities USA LLC)

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