US slowdown is making long end look attractive

The medium to long-end of the US Treasuries markets is favoured as expectations the Federal Reserve will affect a slowdown in the economy increase. Norman McChesney, a senior fund manager at Aberdeen, believes the main theme concerning US Treasuries is the slowdown of the economy. He says: "These bonds are governed by the sentiment on the strength of the economy. The big question is whether the slowdown is for real or if it would bounce back. Over the past two months there have been genuine signs that the economy is slowing down to more sustainable levels." McChesney believes the Fed i...