October 19, 2023
United States:
US Treasuries at 5% Are a Buy, Says Morgan Stanley Investment
If 10-year US Treasury yields hit 5% or higher, that’s a good entry point for investors, according to Morgan Stanley Investment Management.
“Those will be great levels to get longer in your portfolio from a duration perspective” under current conditions, said Vishal Khanduja, money manager and co-head of the broad markets fixed-income team in Boston. “We’ll be superbly in that overshoot category” from the firm’s fair value levels for Treasuries should yields breach 5%.
Europe:
London Wins Back Europe’s Stock Market Crown From Paris
London has recaptured its crown as Europe’s largest stock market from Paris, lifted by surging crude oil prices.
The combined market capitalization of primary listings in London — excluding ETFs and ADRs — is now $2,888.4 billion versus Paris’s $2,887.5 billion, according to an index compiled by Bloomberg.
Asia:
China Sells Most US Securities in Four Years Amid Yuan Weakness
Chinese investors offloaded the most US bonds and stocks in four years in August, fueling speculation the authorities may have moved to beef up their war chest to defend a weakening yuan.
The bulk of the $21.2 billion of sales were in Treasuries and US equities, with funds in the Asian nation also cutting holdings of agency debt, according to data from the US Department of the Treasury released on Wednesday. In August, the onshore yuan tumbled to its lowest against the dollar since November, prompting Beijing to tell state-owned banks to step up intervention in the currency market.
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