TechFlow, August 19 — According to Jinshi Data, Goldman Sachs' global banking and markets chief strategist Schiffrin said that against the backdrop of potential Federal Reserve rate cuts, five-year U.S. Treasury bonds are currently the most attractive trade. He noted that yields in the 3%-4% range offer investment value while providing protection during periods of rising market risk.
The current yield on five-year U.S. Treasuries stands at 3.85%, significantly down from 4.38% at the beginning of the year. A Reuters survey shows that 61% of economists expect the Fed to cut its benchmark interest rate by 25 basis points at its September meeting, bringing it into the 4%-4.25% range.
Goldman Sachs forecasts that, given slowing real GDP growth and rising unemployment, the Fed may begin a rate-cutting cycle in the fourth quarter of 2025 and continue easing in 2026, ultimately bringing the policy rate down to a 3%-3.25% level.
