2012.05.31 18:52:19 MARKET TALK: Soc Gen Calls For 10-Yr Treasury Yield To Drop Below 1%

12:51 (Dow Jones) A daring call from Soc Gen: The 10-year Treasury yield will go below 1%, its analysts say. The call might sound extremely bold at the moment, but it does show what panic buying in Treasurys would look like. "The euro-zone crisis will be a sideshow when the main act appears on stage," the big French bank says in a research note. "As well as a slide back into recession in the US, a hard landing in China will crush any residual optimism of the equity bulls, taking global equities below April 2009 lows." For sure, the bank's call might not come to pass if its scenario doesn't pan out, especially if the deepening crisis pushes policymakers to act. Major central banks like the Fed and the ECB and even PBOC may pump more liquidity. The 10-yr note is recently 14/32 higher to yield 1.576%. (min.zeng@dowjones.com) Call us at (212) 416-3100 or email bradley.davis@dowjones.com (END) Dow Jones Newswires May 31, 2012 12:52 ET (16:52 GMT)