Financial experts advise buying 5-year government bonds - experts from JPMorgan and Morgan Stanley provide recommendations.

Financial experts advise buying 5-year government bonds - experts from JPMorgan and Morgan Stanley provide recommendations.

According to a report by www.finanzen.net, experts from US banks JPMorgan and Morgan Stanley recently stated that it would be advisable to bet on 5-year government bonds. The experts are referring to recent developments in which five-year US Treasury yields rose sharply after traders reduced their bets on interest rate cuts by the Federal Reserve for the current year.

According to bank analysts, there is potential for a recovery in government bonds as yields have already reached December levels. This increase is due to central bankers' dovishness and positive retail sales data, which led to the probability of a rate cut falling to almost 40 percent in March. The market now expects five quarter-point interest rate cuts from the Fed during the year, compared to the previous estimate of six to seven rate cuts on January 12th.

However, experts such as Hideo Shimomura, senior portfolio manager at Fivestar Asset Management Co. in Tokyo, say it is wise to be cautious on bonds as the Federal Reserve may leave interest rates unchanged in the current quarter. This cautious approach is also reflected in ING's forecasts and the expectations of JPMorgan and Morgan Stanley, which expect the Fed's first rate cut only in June, compared to the May rate cuts already priced into swap contracts.

Given this information, it is advisable for investors in government bonds to closely monitor the markets and act cautiously. The uncertainty surrounding the Federal Reserve's future interest rate policy and the potential impact on bond yields requires thorough analysis and, if necessary, adjustment of the investment strategy.