Institution: Investors may consider increasing the short-term period of United States debt

On 28 July, Brendan Murphy, North American Fixed Proceeding Manager of Insight Investment, stated in a report that investors could consider increasing the allocation of the front end of the United States Treasury return curve. Murphy stated that the asset management agency expected the Federal Reserve to maintain interest rates for a longer period of time, while the next final interest rate adjustment could actually be a reduction. He said: “It may therefore be a good time to consider a fixed-income allocation, including increasing the long-term opening at the front end of the curve.” However, the prolonged duration of the Iranian conflict will increase market uncertainty, while a negative vote in favour of the interest rate hike may appear at the Fed’s meeting on Wednesday. According to Murphy, the Fed has consistently argued that “neglect” of the effects of energy price shocks is the best strategy, unless there is a “second-round effect” and it is entrenched or long-term inflation is expected to break loose. Kim Xian