Wilson remains bullish on Treasuries, expecting a reckoning for the US economy.
Still, he said, “after a 50-basis-point rally in the week prior, appetite for the 30-year issue was always going to be questionable.”
Buyers of the auction were rewarded Friday as the new 30-year rallied back in yield terms to around 4.715%, around where it was trading just before the sale for a steep price gain.
“Longer term we’re very bullish on Treasuries and the rates market and we think that they offer really good value,” said Jamie Patton, co-head of global rates at TCW Group, a Los Angeles-based investment firm with about $200 billion under management. “We’ve never, in the history of modern monetary policy, seen the Fed raise rates by over 500 basis points and not had any accident or correction or recession.”
This article was provided by Bloomberg News.