Agency: Faster U.S. economic growth could hurt long-term bonds

Dario Messi, an analyst at Julius Baer Research, said in a report that the assumption of higher nominal U.S. growth in the coming quarters is usually a bearish signal for the bond market. He said this prompted Julius Baer to avoid excessive extension of maturities. "Given the volatility of the market, it is difficult to say that long-term yields have reached an attractive entry point at present," Messi said. Julius Baer sees good opportunities in three- to seven-year U.S. Treasuries. "Those with longer maturities and the highest quality should only be used for hedging purposes in case of a U.S. recession," Messi said. (Jinshi)