Morgan Stanley Says Buy Treasuries If Yields Climb This Week

For the Treasury market, this historically has been a bad week. If it happens again this year, Morgan Stanley strategists say investors should buy the dip “with both hands.”

October has been the worst month for the US government bond market on average over the past 25 years — producing a median loss of 0.30%, concentrated in its first half. In particular, Treasury yields have cheapened during the week before the Columbus Day holiday, which falls next Monday, Oct. 13.