Bond investors who had bet that central banks were too hawkish in the face of recession risks should now book profits as this week’s rally is overdone.
That’s the view of strategists at JPMorgan Chase & Co. and TD Securities Inc. who say it’s time to close out long positions in Treasuries as the Federal Reserve may still tighten policy next week. US government bonds have surged in recent days as traders cut wagers on Fed rate hikes amid turmoil in the banking sector.
