📝 Entered Tactical Long Treasury 3-Year, Target At 2.25%: TD Securities

Entered tactical long treasury 3-year trade at 2.75%, targeting 2.25%, stop at 3.01%. Fed policy path is uncertain, QT is tightening policy in the background, it will create significant duration supply and move term premium higher. We think Fed will be more cautious on the policy tightening path as it attempts to a deliver a 'soft landing', and will accept above-target inflation as long as it's decelerating. We remain long 2-year TIPS breakevens vs. 10-year TIPS breakevens. - TD Securities Rates Strategy