State Street Global is bullish on U.S. Treasuries and believes that the delay in the Fed's interest rate cut will hurt the economy

Sina Financial News State Street Global is bullish on U.S. Treasuries, believing that keeping the Fed’s policy Intrerest rate high for a longer period of time could cause more damage to the world’s largest economy. Matthew Steinaway, the firm’s chief investment officer for global fixed income, said: "We are going long on US Treasuries, and in terms of Intrerest Rates, we are very bullish on the US. We tend to focus on the middle end of the curve, which is the 5-year and 10-year Treasuries. “The later the Fed delays cutting interest rates, the more damage it will do to the economy.” They expect the Fed to cut rates by 25 basis points in July and then cut rates at least twice more for the rest of the year. “There are more long short rooms”. “At these moments, we don’t see value as the entry point into the credit market,” he said. "Spreads on investment grade and high yield bonds are at historic lows, and there is no long reason for them to tighten further.