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Goldman Sachs: Fed Expected to Cut Rates by 25 Basis Points in September, Five-Year US Treasury Bonds Best Trade Option Before Rate Cut
Summary: According to reports, Goldman Sachs' global chief strategist, Sheflin, stated that in the context of a possible rate cut by the Fed, five-year US Treasury bonds are currently the most attractive trading option. He noted that the yield on five-year bonds in the 3%-4% range is worth investing in and can provide protection in times ...
According to reports, Goldman Sachs' global chief strategist, Sheflin, stated that in the context of a possible rate cut by the Fed, five-year US Treasury bonds are currently the most attractive trading option. He noted that the yield on five-year bonds in the 3%-4% range is worth investing in and can provide protection in times of rising market risks.
Currently, the yield on five-year US Treasury bonds is 3.85%, significantly lower than the 4.38% at the beginning of the year. A Reuters survey shows that 61% of economists expect the Fed to cut the benchmark rate by 25 basis points to the 4%-4.25% range at the September meeting.
Goldman Sachs predicts that considering the slowdown in real GDP growth and rising unemployment rate, the Fed may start a rate-cutting cycle in the fourth quarter of 2025 and continue to implement loose policies in 2026, eventually adjusting the policy rate to the 3%-3.25% level.
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Link: Goldman Sachs: Fed Expected to Cut Rates by 25 Basis Points in September, Five-Year US Treasury Bonds Best Trade Option Before Rate Cut [Copy]
