The sharp fall in U.S. Treasury yields this year has taken many by surprise, and some traders are now looking for the exits amid concern that a correction is looming.
“The kitchen is about to heat up and we want out now,” Morgan Stanley said in a note Friday.
It believes expectations the European Central Bank (ECB) will take fresh easing measures are behind the decline in Treasury yields over April and May and that the central bank’s policy decision on Thursday will mark the low for yields.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.