After UBS upgraded 5-year TIPS to most preferred in August, the firm is now recommending to move further out the curve.
Investors can lock in some juicy real yields with Treasury inflation-protected securities, according to UBS. After upgrading 5-year TIPS in August to most preferred and seeing them outperform 5-year nominal Treasurys this year, the bank now recommends moving out the curve to the 7-year to 10-year areas . With TIPS, the principal portion rises and falls alongside the movement in the consumer price index for all urban consumers.
Treasury yields are expected to decline when the Federal Reserve starts reducing the fed funds rate. Investors earlier this year had anticipated multiple rate cuts in 2024, but those expectations have since changed. They now only expect one rate cut by the end of 2024 , according to the CME FedWatch Tool . Fed officials have repeatedly said they don't expect to decrease rates until inflation nears the central bank's 2% goal.
Inflation Bonds U.S. 10 Year TIPS U.S. 5 Year Treasury UST 5-Yr. TIPS Stock Markets Investment Strategy Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
It’s prime time to lock in yields on this tax-free income play, UBS saysRates won't be coming down until later this year, the bank predicts, and that presents an opportunity to buy municipal bonds now.
Read more »
Morgan Stanley and UBS Compete to Add Bitcoin ETFs to Their PlatformsBoth Morgan Stanley and UBS are set to add Bitcoin ETFs to their platform next week, with Morgan Stanley aiming to be the first wirehouse to fully approve the Bitcoin ETF.
Read more »
This food company 'stands out as a beneficiary of GLP-1 adoption'This food company 'stands out as a beneficiary of GLP-1 adoption' - UBS
Read more »
Citadel, Goldman Sachs, UBS, Citigroup Now Want Piece of BitcoinCitadel, Goldman and UBS are no longer shying away from being publicly associated with Bitcoin, accordion to ETF analyst Eric Balchunas
Read more »
UBS CEO says integrating Credit Suisse will become a 'case study' for future big bank mergers'I hope one day those kinds of mergers between big banks will be allowed and we can contribute to that by showing that it's possible,' Sergio Ermotti said.
Read more »
Why UBS analysts are bullish on Disney stockWhy UBS analysts are bullish on Disney stock
Read more »