Wall Street strategists are suggesting a neutral stance on US Treasuries due to the combination of Donald Trump's presidential victory and the expected interest rate cuts by the Federal Reserve.
Major financial institutions, such as Citi, JPMorgan, and Morgan Stanley, are advising investors to maintain a neutral position on bond duration following the recent election results.
Despite the uncertainty, strategists anticipate that Trump's potential economic policies, which may involve tariffs and tax cuts, could result in increased inflation by 2025. This cautious outlook reflects the need for market participants to carefully consider the impact of political changes in conjunction with shifts in monetary policy.