Via Bloomie:
With the longest sell-off in a year stalling, Citigroup strategists Jabaz Mathai and Jason Williams say go long duration by purchasing 10-year notes at about 3 per cent. They’re targeting a rally that pushes the yield down to 2.65 per cent, according to a note released on Thursday (Friday AEST). They’d add to their position on a sell-off up to 3.1 per cent, but would stop out at a close over 3.15 per cent.
Investors in the world’s biggest bond market are weighing how much further yields can rise after they touched the highest levels in four years this week. The median estimate among 57 analysts surveyed by Bloomberg is for the 10-year rate to climb gradually for the rest of 2018, to 3.14 per cent by year-end. It fell three basis points to just below 3 per cent on Thursday.
