Schroder Investment: The Federal Reserve still has the potential to cut interest rates this year, and short to medium-term bonds can better control interest rate risks

Schroder Investment stated that despite the fluctuation in inflation data in certain months in the United States, they believe that the overall direction of the US economy is still heading towards a "soft landing." They expect that the Federal Reserve is still likely to cut interest rates this year, just with a delayed timeline. Schroder Investment currently prefers short to medium-term bonds to better control interest rate risks. They believe that the US economy is not in a scenario of "no landing" and anticipate that the inflation level will remain relatively high, with the job market not overheating. Regarding the Asian bond market, they believe that the Chinese government's support measures for the real estate market have improved investors' views on domestic real estate bonds. However, they still need to observe the trend of domestic corporate bonds in the next 3 to 6 months