BNP PARIBAS: Buy the 10-year

BNP Paribas has a simple suggestion: buy the 10-year Treasury.

In a quick update Thursday morning, the firm sent around a trade recommendation telling clients to buy the 10-year Treasury, putting a target price of 1.40% on the trade.

The firm notes it was originally recommending the trade at 1.90% with a stop, or a price at which investors should take profits, of 1.60% but this has been extended to a target of 1.4%. BNP’s new stop is 1.65% and a re-entry would be recommended at 1.75%. Bond prices rise when yields fall.

This recommendation comes on a morning when stocks are selling off and the 10-year is pushing to a fresh year-to-date low of 1.528%, its lowest level since 2012.

As of 11:30 a.m. ET, the 10-year yield had backed up to around 1.56%.

The record-low yield for the 10-year was hit in July 2012 at 1.38%.

Other big movers on Thursday include the British pound falling against the dollar and gold rallying.

NOW WATCH: Chick-fil-A is giving out free sandwiches — here’s how to get one

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.