According to Jinshi, JPMorgan strategists said it was time to take profits. Three weeks ago, they recommended selling 5-year U.S. Treasuries, and now the yield on 5-year U.S. Treasuries has climbed more than 20 basis points from about 4.20% less than three weeks ago. The surge highlights the increased selling pressure from month-end index rebalancing and the growing uneasiness about U.S. interest rate hikes after last week's presidential election debate. "As yields fall back to the midpoint of the three-month range, valuations look cheaper," strategist Jay Barry wrote in a report. They recommend taking profits on 5-year short bets before event risks rise, noting that employment and wage data will be released the day after the U.S. Independence Day holiday.
