UBS Calls The Bottom: "Treasury Selloff Hits Capitulation... Marks End Of Current Unwind"

The chorus of voices calling for a bounce in 10Y Treasuries is getting louder, and one day after Morgan Stanley said that 5% is a "great entry point" for Treasury longs and Goldman recommended buying TSY calls, this morning UBS desk trader Rebecca Cheong writes that "treasury bonds hit capitulation on Thursday and it should mark the end of the current multi-asset unwind cycle that started on Aug. 1."

Next, Cheong says that her "first price target for TLT upside is 91.4." She also adds that "equity weakness on Friday isn’t from multi-asset unwind, but from retail selling."