Yesterday at 11:11 AM
US bond investors are extending duration due to risks of economic slowdown
Investors are buying long-term US bonds on worries about a possible economic downturn in the country. At the same time, they reduce risk positions, Reuters reports.
Portfolio managers buy longer-dated assets anticipating a further drop in yields, the agency's experts believe. In doing so, market participants demonstrate their expectation of a deeper rate-cutting cycle. According to Christian Hoffmann of Thornburg Investment Management, investors' actions are motivated not so much by the current economic outlook as by concerns about the future.
J.P. Morgan analysts point out the largest net-long position on US Treasuries since 2010. This, coupled with excessive purchases, may lead to a temporary increase in bond value.
Recommended
The NYT sees Europe's potential to strengthen its position on the global stage
Yesterday at 11:43 AM
Guggenheim's Walsh calls for Fed rate cuts as necessary measure
Yesterday at 11:24 AM
Declining German factory orders signal persistent trade uncertainty
Yesterday at 10:55 AM
ECB's Elderson highlights climate impact on eurozone economy
Yesterday at 10:38 AM
US trade deficit grew in May
Yesterday at 10:29 AM
Top news
Yesterday at 10:59 AM
Yesterday at 10:39 AM
Yesterday at 9:49 AM
Yesterday at 9:48 AM