US Treasurys Seen Losing Tactical Appeal

1028 GMT – Current reduced market expectations for tight U.S. monetary policy makes Neuberger Berman see less tactical value in government bonds than earlier in the year, with duration holding reducing appeal, it says. “Yields are likely to remain higher than what markets are used to,” the asset manager says, adding that within Neuberger Berman’s current expected range of 3% to 4%, the 10-year Treasury yield sits fairly close to its lower bound. This makes it “less attractive than it was a few months ago and potentially vulnerable to a pull-back if the central bank fails to ease as much as anticipated,” Neuberger Berman says in a quarterly fixed-income investment outlook. (emese.bartha@wsj.com)