Treasurys have been under scrutiny amid President Donald Trump’s trade policies, with long-dated debt facing pressure. But analysts say there is still opportunity in the bond market.
Short-dated Treasurys are still seen as safe amid the dollar’s dominance and likely Federal Reserve interest rate cuts should the economy enter a downturn.
“We have seen a bit more outflow from US dollar bonds, but I don’t see anything that will be replacing the US dollar in the future,” Warut Promboon, the managing partner at Hong Kong-based research firm Bondcritic, told Business Insider.
His comments come as 30-year yields recently climbed above 5% — a sign of weaker demand as investors grow wary of locking in lending to the US government for decades.
Warut, who has over 20 years of experience in the bond market, is advising clients to lean into gold and shorter-dated dollar bonds, such as five-year Treasurys.
While Warut…
