0902 GMT - Longer-dated Treasurys are worth buying after their falls last month which took yields sharply higher, says Morgan Stanley Investment Management's Jim Caron in a note. The rise in yields was "mainly technical in nature." It came as investors scrambled to cover positions and unwound basis trades--a leveraged way to hold Treasurys--following a sudden fall in equities after the announcement of widespread U.S. tariffs. Treasurys are still a safe-haven investment, Caron says. "If the U.S. economy is slowing due to tariffs, and recession risks are rising, we then believe longer duration U.S. Treasurys have both outright and hedging value to investors." (emese.bartha@wsj.com)
(END) Dow Jones Newswires
May 07, 2025 05:02 ET (09:02 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.