U.S. Debt May Rise as D.C. Dysfunction Draws Downgrade, UBS Says

Treasury yields, now at almost eight-month highs, are set to reverse course as political wrangling in Washington and a “likely” U.S. credit downgrade drive investors to the safety of government debt, according to UBS AG.

“Treasuries are likely to rally over the next month or two,” Mike Schumacher, head of global-rates strategy at UBS, said in a Bloomberg Television interview on “Market Makers” with Erik Schatzker and Stephanie Ruhle. “The market doesn’t know how the political risk plays out.”