0648 GMT - HSBC Research is cutting exposure to U.S. Treasurys, while it extends underweight in developed market sovereigns, it says in a note. HSBC's "Danger Zone" model shows that 10-year U.S. Treasury yields rising above 4.7% would likely trigger another broad-based dip in risk assets, it says. Given that positioning and sentiment proxies on U.S. Treasurys do not seem stretched, and the extensive U.S. spending plans, that level could be reached in the coming weeks, it says. HSBC also remains underweight in Japanese government bonds. However, it is more upbeat on non-core eurozone government bonds, keeping them at an overweight rating, it says. The 10-year U.S. Treasury yield is up 5.5 basis points at 4.533%, according to Tradeweb. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

May 29, 2025 02:48 ET (06:48 GMT)

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