Treasuries at 3% Still in Play This Year, HSBC’s Sels Says
- Market expectations of long-term rates are still too high
- Sels is adding exposure to seven and 10-year Treasuries
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Treasuries are set to gain big later this year as bets on cooling prices and potential political risks converge, according to the private banking and wealth arm of HSBC Holdings Plc.
Yields on the 10-year government note can drop to between 3% and 3.5% this year, according to Global Chief Investment Officer Willem Sels. That would be a drop of nearly 130 basis points from current levels.