Rising market volatility, increasing geopolitical turmoil, subdued inflation, and looming trade wars are flashing a buy signal for longer-dated U.S. Treasurys, according to Matt Hornbach and team.
“Global bond market duration has not looked this attractive in over two years," they say, advising to buy the dip in bonds should equity markets rebound.
A return to all-time highs in stocks and/or a fizzling in trade tensions would have the Morgan Stanley team revisiting its bullish thesis.
With stocks moving sharply higher today, the 10-year Treasury yield is up 2.4 basis points to 2.801%.
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