Russell Investments: US Treasury Bond Valuation Reasonable

According to BeiChen Lin, an investment strategist at Russell Investments, the current US Treasury yield roughly aligns with Russell Investments’ fair value estimate. In a report, he stated, ‘Although this means that the reasons for strategic (short-term) increases in holdings may have diminished, we still believe that US Treasury bonds can be an important defensive lever in portfolios from a long-term perspective, especially considering that the risk of recession may still be higher than average.’ Russell Investments expects that the August inflation data, which will be released on Wednesday, will be slightly higher than expected. This should not affect the Federal Reserve’s decision to cut rates by 25 basis points at its September meeting, but it may trigger some rebound in the stock market.