Deutsche Bank: Suggest going long on 10-year US Treasury bonds, current yield is attractive

On January 11, Jinshi data, the strategist of Daimler Securities recommended investors to establish long positions in 10-year US Treasury bonds, because the current level is "attractive," and the US economy is expected to slow down in the second half of the year. Analysts said that Daimler Securities established long positions in 10-year US bonds at 4.74%, with a target of 4.30% and a stop loss of 5.05%; the trading scale is $50,000 DV01. Although facing significant risks, and recent economic data may be affected by residual seasonal factors, it is not believed that the US economy or inflation is accelerating, and it is believed that the 10-year yield in the 4.50-5% range is attractive. Daimler Securities expects the following conditions to drive yields higher: market digestion of Fed rate hikes, with strategists considering this possibility to be low; further expansion of fiscal policy, given that Republicans only hold a slim majority in the House of Representatives, its extent should be limited; and tariffs are higher than the current market expectations.
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