U.S. 30-Year Bonds Attractive After Fed Move, Deutsche Says
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Treasury 30-year bonds are more attractive relative to mortgage-backed securities after the Federal Reserve said it would reinvest principal payments from its mortgage holdings into long-term U.S. debt, according to Deutsche Bank AG.
The U.S. 30-year yield is higher than that on the current coupon mortgage-backed security for the first time since 2009, a team of analysts including Dominic Konstam and Mustafa Chowdhury in New York wrote in a note issued Aug. 13. A "rates sell-off would be an opportunity to buy the long end of the Treasury curve," they wrote.