Organization: Accelerated US economic growth may harm long-term bonds

Swiss wealth research analyst Dario Messi said in a report that the assumption of rising nominal growth rates in the United States for future quarters is usually a bearish signal for the bond market. He stated that this prompted Wealth to avoid overextending maturities. Messi said, "Given the volatility of the market, it's still hard to say whether long-term yields have reached an attractive entry point." Wealth sees good opportunities in U.S. government bonds with maturities between 3 and 7 years. Messi said, "Those longer-term, highest-quality bonds should only be used for hedging purposes to guard against a U.S. economic recession."