Oriental Wisdom Fund has lowered its view on the duration exposure of US bonds.

The Oriental Wisdom Investment Research Institute has slightly lowered its view on the duration exposure of US Treasury bonds, pointing out that the US economy still has resilience and the Federal Reserve will not cut interest rates before next year. "The short-end valuation of US Treasury yield curve is expensive, while the long end faces fiscal risks," wrote Amaury D'Orsay, fixed income head of Europe's largest asset management company, in a report. He added that he currently prefers inflation-linked bonds. "The Federal Reserve is currently in wait-and-see mode. Looking ahead, we expect it to keep interest rates unchanged for a considerable period of time," said Monica Defend, head of the Oriental Wisdom Investment Research Institute, adding that the Federal Reserve will not resume rate cuts before the second quarter of 2027.