Updated
Updated · Bloomberg · Aug 14
Ninety One's Borbora-Sheen Bets on 30-Year Treasuries Rally as Warsh Inflation Credibility Rebounds
Updated
Updated · Bloomberg · Aug 14

Ninety One's Borbora-Sheen Bets on 30-Year Treasuries Rally as Warsh Inflation Credibility Rebounds

1 articles · Updated · Bloomberg · Aug 14

Summary

  • Jason Borbora-Sheen is adding a contrarian leg to this year’s popular yield-curve steepener, positioning for 30-year Treasuries to outperform 10-year notes.
  • The trade rests on easing price pressures, which he expects will rebuild investor confidence in Fed Chair Kevin Warsh’s commitment to fighting inflation.
  • Long bonds have been hit by a sharp selloff since July, making the 30-year rally call a bet against the recent market move as well as a policy-credibility wager.

Insights

With 30-year yields hitting 2007 highs, what hidden data signals suggest this risky yield-curve steepener trade might actually pay off?
Will cooling inflation vindicate a bold contrarian bet on 30-year Treasuries, or is the bond market trap just waiting to spring?