Deutsche Bank AG was one of the few firms surveyed by Bloomberg in January to correctly predict the worst rout in the U.S. Treasury market since 2009. Now, Germany’s largest lender says it’s time to buy.
“The economy isn’t growing as strongly as we’d hoped,” Dominic Konstam, the New York-based global head of interest-rate research at Deutsche Bank, said in a telephone interview on Oct. 28, one day before a measure of U.S. consumer confidence plunged by the most in more than two years.
Yields on Treasuries climbed higher last week as the Institute for Supply Management’s factory index showed some parts of the economy already started to recover. Manufacturing grew in October at a faster pace than economists forecast, with the index climbing to the highest level since April 2011.