Last month the US yield curve inverted, with the yield on 10-year Treasury bonds dipping beneath the yield on 3-month Treasury bills.
In recent weeks, investors have fixated on the inversion of several sovereign yield curves, most notably the US Treasury curve.
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Over the past few months, we have become more positive on US Treasuries.
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Dollar-denominated bonds have not had the best of times recently, writes Mateusz Malek, head of bonds research at Killik & Co.
The EMD hard currency (HC) asset class has declined by 4.75% since the beginning of the year.
In recent months we have been buying 0-5 year US inflation-linked bonds (TIPS) as a defensive move to get exposure to the US dollar, writes MitonOptimal's Peter Geikie-Cobb.
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10-year Treasury yield passes 3%