Barclays Says Sell US Treasuries After ‘Excessive’ Bond Rally
- Strategists recommend shorting 10-year US government bond
- The case for a ‘meaningful’ easing cycle in US has weakened
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Investors should consider selling 10-year Treasuries as the resilience of the world’s largest economy makes the recent US bond rally look overdone, according to Barclays Plc.
Yields on the global funding benchmark have fallen nearly 30 basis points from this year’s peak of 4.35% as traders bet the Federal Reserve will cut interest rates sooner rather than later. The drop in yields is “odd” given US economic data have proved stronger than expected in recent weeks, strategists including Anshul Pradhan and Amrut Nashikkar wrote in a note.