Bloomberg News

Greek CDS Prospects Make Treasuries a Buy on Dips, SocGen Says

March 09, 2012

Investors should increase holdings of U.S. Treasuries on any drop in price because haven assets will be in demand as Greek credit default swaps, or CDS, are triggered after its debt exchange, Societe Generale (GLE) SA said.

“Use any dip in U.S. Treasuries to increase long duration positions,” strategists led by Vincent Chaigneau, global head of interest-rate strategy in Paris, wrote in a research report yesterday. “Markets will be relieved that a disorderly default has been avoided. But CDS will be triggered. That is a big leap into the unknown. Concerns on growth are rising in Europe, while the momentum in the U.S. recovery is questionable. The good news has now been fully priced.”

The U.S. 10-year note yield was little changed at 2.02 percent at 6:55 a.m. London time.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus