Negative Economic Surprises Could Help Treasuries, HSBC’s Kettner Says

HSBC’s Max Kettner argues that a continued run of negative US economic surprises could revive demand for US Treasuries—specifically a “bid for duration.” The call implies a potential shift toward longer-dated bonds if growth momentum continues to fade, but it is framed as a conditional scenario rather than a confirmed change in yields.

Analysis

HSBC’s Max Kettner argues that a continued run of negative US economic surprises could revive demand for US Treasuries—specifically a “bid for duration.” The call implies a potential shift toward longer-dated bonds if growth momentum continues to fade, but it is framed as a conditional scenario rather than a confirmed change in yields.