Popular US Treasury Bet Risks Being Next Pain Trade, BNP Warns

Investors betting that yields on long-dated US Treasuries will keep rising faster than those on shorter notes risk getting burned, according to BNP Paribas SA.

Guneet Dhingra, the New York-based head of US rates strategy at the French bank, said 30-year Treasuries already price in the worsening fiscal picture and could rebound if there’s strong demand for an auction or deficit fears ease. He sees a case for buying the bonds at current levels.