Key Takeaways:
- Ned Davis Research suggests buying the dip in Treasuries
- Strategist Joe Kalish notes the call is a pivot
- Follows a volatile week for government debt markets
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Ned Davis strategist says buy the dip in 10-year Treasuries
Ned Davis Research is calling a pivot to U.S. Treasuries, suggesting investors buy the dip after a volatile week in government debt.
"It's time to start buying the dip in Treasuries," Joe Kalish, a strategist at Ned Davis Research, said in a note on Friday.
The recommendation follows a tumultuous week that saw the benchmark 10-year Treasury yield climb above 4.4 percent, its highest level in four months, as traders pushed back expectations for Federal Reserve interest-rate cuts.
The move by a prominent research firm to turn bullish on bonds could signal a shift in sentiment. Investors will be closely watching next week's inflation data for clues on the Fed's path.
Kalish's call suggests that his firm believes the recent selloff in bonds is overdone and that yields are nearing a peak. The next major catalyst for the Treasury market will be the release of the Consumer Price Index (CPI) on April 10.
This article is for informational purposes only and does not constitute investment advice.
