Goldman Sachs Strategist Favors Five-Year U.S. Treasury Amid Expected Fed Rate Cut
According to PANews, Goldman Sachs’ Chief Strategist for Global Banking and Markets, Josh Shifrin, has voiced a preference for five-year U.S. Treasury bonds ahead of a potential interest rate cut by the Federal Reserve in September.
Shifrin noted that the five-year Treasury, currently yielding around 3.85%, offers attractive value compared to its earlier levels this year and provides investors with a degree of protection in weakening risk markets. At the start of 2025, yields were notably higher, with the recent decline signaling investor expectations of a more accommodative monetary stance.
He forecasts that the Fed will cut rates by 25 basis points at its upcoming meeting, potentially marking the start of an easing cycle that could stretch into 2026.
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