The message from primary dealer UBS is clear--buy Treasurys because the recent rise in yields went too far, too fast. The firm contends investors seem to be overreacting to what UBS believes is a "slim" possibility the FOMC begins tapering QE fairly soon. The bank's analysis also suggests the 10-year Treasury yield, last at 2.10%, is a half-point above fair value and that Treasurys are entering a supportive time of year, having performed the best in the June-September time period since 1990.
(cynthia.lin@dowjones.com; @cynthialin_dj)
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