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Greek CDS Prospects Make Treasuries a Buy on Dips, SocGen Says

March 9 (Bloomberg) -- Investors should increase holdings of U.S. Treasuries on any drop in price because haven assets will be in demand as Greek credit default swaps, or CDS, are triggered after its debt exchange, Societe Generale SA said.

“Use any dip in U.S. Treasuries to increase long duration positions,” strategists led by Vincent Chaigneau, global head of interest-rate strategy in Paris, wrote in a research report yesterday. “Markets will be relieved that a disorderly default has been avoided. But CDS will be triggered. That is a big leap into the unknown. Concerns on growth are rising in Europe, while the momentum in the U.S. recovery is questionable. The good news has now been fully priced.”

The U.S. 10-year note yield was little changed at 2.02 percent at 6:55 a.m. London time.

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To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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