Treasuries’ Top Trade at Risk as Long-Dated Yields Take Flight
- Treasuries due in 10 or more years up more than 15% in 2019
- MSIM manager Caron has reduced duration in portfolios
Photographer: Andrew Harrer/Bloomberg
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The Treasury market’s top-performing trade is under threat as the U.S. and China appear to be closing in on a partial trade deal, boosting prospects for global growth and quicker inflation.
U.S. government debt due in a decade or more has returned more than 15% this year through Nov. 5, on track for its biggest annual gain since 2014, according to a Bloomberg Barclays index. But the performance has started to fizzle, with the measure extending declines to a third straight month as 10- and 30-year yields touch the highest since September. And investors will be keenly focused on the longer end of the curve this week, with the U.S. Treasury preparing to sell 10-year debt on Wednesday and 30-year bonds the day after.