Pandemic to Drag Treasury Yields Even Lower for HSBC’s Major
- End-2020 call for 0.5% is lowest in Bloomberg’s bond survey
- Major sees 10-year yields under 1% for ‘a very long time’
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This year’s virus-driven rally in Treasuries is over for most analysts -- but not for HSBC Holdings Plc’s contrarian bond chief Steven Major.
He sees the yield on benchmark U.S. Treasuries dropping to end the year at 0.5% -- that’s the lowest forecast in Bloomberg’s bond yield survey, which sees it climbing instead to around 0.9%. The argument is based on the economic fallout from the coronavirus keeping Federal Reserve rates near zero, said Major, the global head of fixed-income research at HSBC.