Allianz Investment: Economic slowdown prompts the Federal Reserve to start cutting interest rates, optimistic about allocating short-term government bonds and high-quality credit

Allianz Investment is optimistic about short-term government bonds and high-quality credit assets, believing that the Federal Reserve's interest rate cuts will drive the allocation of core rate products. The newly appointed Global Head of Fixed Income, Zeng Zheng, pointed out that the slowdown in economic growth and weak employment data are key factors for rate cuts. Allianz Investment is focused on the impact of fiscal policy on long-term bond yields and recommends that investors consider emerging market bonds and sovereign bonds from stable countries, while maintaining an optimistic outlook on the euro. In the credit sector, despite the narrowing spreads, BBB-rated and BB-rated bonds still hold attractiveness