Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout
- Both firms recommend investors buy five-year US Treasury notes
- Last week saw five-year Treasuries selloff the most since May
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Two major Wall Street firms are recommending investors start buying five-year US notes after they saw their worst rout since May last week.
Morgan Stanley sees scope for a rebound in Treasuries on expectations data in the coming weeks may surprise to the downside. JPMorgan Chase & Co. is suggesting investors buy five-year notes as yields have already climbed to levels last seen in December, though it warned that markets are still too aggressive in pricing for an early start to central bank interest-rate cuts.