Barings Investment is optimistic about long-term US dollar bonds in Asia, predicting that the Federal Reserve may cut interest rates twice this year

According to media reports, Barings Investment Company believes that there may be investment opportunities in long-term US dollar bonds in the Asian region. Omar Slim, the company's co-head of fixed income, said that the market is overly pessimistic about the possibility of the Federal Reserve cutting interest rates this year and expects that the Fed may still cut rates twice this year. This situation could provide investors with an opportunity to go long on Asian long-term bonds.

As investors have already adapted to higher interest rates maintained by the Federal Reserve over a longer period of time, total returns so far this year on high-grade Asian bonds with terms exceeding 10 years have fallen by 5.6%. However, Slim stated that if markets continue to sell off, they will look for opportunities to buy long-term bonds, especially those with a maturity of 30 years.