News

According to a report by Jinse Finance, Goldman Sachs’ Chief Global Banking and Markets Strategist, Shifrin, stated that five-year U.S. Treasury bonds are currently the most attractive trading option amid the prospect of potential Federal Reserve rate cuts. He pointed out that five-year Treasury yields in the 3%-4% range offer investment value while also providing protection when market risks rise. At present, the five-year U.S. Treasury yield stands at 3.85%, a significant drop from 4.38% at the beginning of the year. A Reuters survey shows that 61% of economists expect the Federal Reserve to lower its benchmark interest rate by 25 basis points to the 4%-4.25% range at its September meeting. Goldman Sachs forecasts that, given the slowdown in real GDP growth and rising unemployment, the Fed may begin a rate-cutting cycle in the fourth quarter of 2025 and continue easing into 2026, ultimately adjusting the policy rate to the 3%-3.25% level. (Jin10)

According to a report by Jinse Finance, U.S. Treasury yields edged lower during the European session. However, Exness financial market strategy advisor Inki Cho stated in a report that yields may rise again ahead of the Jackson Hole Symposium. Federal Reserve Chair Jerome Powell is scheduled to speak on Friday. Cho noted that if investors' recent bets on Fed rate cuts ease, yields could climb. "If Powell's tone suggests a slower pace of rate cuts, yields may rise further."