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Macro Trade #1 - Moving into the bond loading zone

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For long-term, value-oriented investors, we recommended buying the 10-year Treasury around 5.00% +/- 25 bp. The yields rise is all about the term premium. We attribute the rise in the term premium to expected changes in Treasury supply, primarily due to upcoming changes in fiscal policy. Trading conditions are conducive for a reversal.

Ned Davis Research | Fixed Income | Focus | Bi-Weekly

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