US Treasuries at 5% Are a Buy, Says Morgan Stanley Investment
- Yields would overshoot firm’s fair value if they breach 5%
- Steeper curve, term premium have helped Fed with tightening
The Treasury Building in Washington, DC.
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If 10-year US Treasury yields hit 5% or higher, that’s a good entry point for investors, according to Morgan Stanley Investment Management.
“Those will be great levels to get longer in your portfolio from a duration perspective” under current conditions, said Vishal Khanduja, money manager and co-head of the broad markets fixed-income team in Boston. “We’ll be superbly in that overshoot category” from the firm’s fair value levels for Treasuries should yields breach 5%.