Lighthouse Canton says US rates selloff offers entry point as 10-year yield hits 4.61%
TLT•Lighthouse Canton sees selloff as an entry point
Lighthouse Canton flagged the US rates sell-off as an entry point, shifting to a modest duration overweight built via a staged barbell.
US Treasury yields rose to cycle highs: 10Y at 4.61% (+42bp YTD), 30Y at 5.1%; MOVE index jumped to 77.8.
The move was framed as real-yield driven, with 10-year real yields above 2.3% while breakevens stayed broadly stable.
The firm recommended an income-first, investment-grade-tilted credit stance, citing tight spreads: IG OAS near 75bp, high yield near 270bp.
It preferred a steepener bias, with GCC quasi-sovereign and selective hard-currency EM exposure as diversification against US duration shocks.
