Treasury Yields May Fall to 2% as Gundlach, Banks Eye Recession
- Pendal says any selloff in Treasuries is a buying opportunity
- Recession odds are ‘pretty darn high’ right now, Gundlach says
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The rally in US Treasuries is set to accelerate as the world’s biggest economy slides toward a recession, strategists say.
Benchmark 10-year yields may fall to as low as 2% by early next year if the US suffers a bigger downturn than currently envisaged, according to Mizuho Bank Ltd. Yields may slide to 2% if a severe recession is triggered by, for example, a few more regional banks coming under pressure, JPMorgan Asset Management says.