Favor bonds over stocks – with 10-year Treasurys set to shake off the market meltdown and deliver double-digit returns, UBS says

• Investors should load up on bonds despite fixed income's recent struggles, according to UBS.
• Longer-term Treasurys have been routed in recent months in a meltdown that ranks among the worst market crashes ever.
• But 10-year yields will drop to 3.5% over the first half of 2024 as growth slows and the Fed winds down its tightening campaign, the Swiss bank said.

Investors should be eyeing up bonds rather than stocks despite the market meltdown that's led to fixed-income prices cratering in recent months, according to UBS.

The Swiss bank said Monday that it expects the key 10-year US Treasury yield to fall from it's current level of 4.7% to just 3.5% over the first half of 2024, which it estimated would net bondholders returns of around 13%.