The entity said that American treasure bonds have more profit potential than European governments bonds.
JPMORGAN ASSET MANAGEMENT announced that there is a “enormous” opportunity in the US Treasury Bonds He affirmed and that, even, they have more profit potential than the bonds of European governments, since The operators are underestimating the degree to which the Federal Reserve will cut interest rates compared to the European Central Bank.
“President Donald Trump’s tariffs are more likely to harm the growth than stimulating inflation”Said Myles Bradshaw, director of Global Attached Strategies of the firm in Bloomberg TV. It provides that the US will eventually have to cut interest rates more aggressively, after having maintained monetary policy without changes for a longer time.
“It is estimated that US rates will be above 3% – on top of their neutral rate – over the next few years and that is where I think there is a huge opportunity,” said Bradshaw.
Good perspective for US bonds
Some global investors, among them Pacific Investment Management CO., The US government bonds are considering again, after The mass sale caused by concern for Trump’s tariff policies, yields were fired. Treasury bonds rebounded throughout the curve on Thursday, with falls up to four basic points in short -term bond yields.
In Europe “There is a certain upward margin, but it is not as significant as in the US”said Bradshaw.
Monetary markets are currently inclined to The ECB implements three additional cuts of a quarter -point quarter this yearcarrying the tank rate at 1.5%. As for the Fed, the operators anticipate at least three reductions up to 3.75%, with a fourth also on the table.
In recent days, the markets had a respite after Trump indicated that he is willing to negotiate a commercial agreement with China and moderate his rhetoric around the president of the Fed, Jerome Powell. The yields of the long -term treasure bonds collapsed on Wednesday and the five -year auction registered a strong demand.
“We are seeing less bad news and less short -term uncertainty,” he added and added: “The key factor will be growth and inflation. That is what the future will determine.”
Source: Ambito
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