Investors are starting to find opportunities in the battered bond market
Source: CNBC ·
Some market participants see reason for hope in a market bludgeoned this year.
From the source
Even after another bond market rout Friday, investors are turning their attention toward Treasurys, anticipating that yields may be topping out. The benchmark 10-year note spent the day flirting with the psychologically important 5% level as oil prices surged and a fresh consumer survey showed that inflation expectations remain a good distance above the Federal Reserve's 2% goal. Still, some market participants see reason for hope in a market bludgeoned this year over worries about rising prices, tensions in the Middle East and stiff competition from artificial intelligence hyperscalers flooding the market with debt. Bank of America's Michael Hartnett in a client note declared "The Price is Right" on the battered Treasury market, which he noted has seen its worst long-run return in the past 100 years. The investment strategist noted in his weekly money-flow summary that the "secular contrarian [trade] would be adding bonds," drawing a parallel to similar long-run negative returns for…