Kevin Zhao of UBS Asset Management plans to take advantage of the sharp rise in 10-year US Treasury bonds next year, and believes that the dovish Federal Reserve and US President Trump's efforts to stimulate growth before the midterm elections will once again intensify inflation. Zhao, head of the actively managed sovereign, fixed income and exchange fund at UBS Asset Management, said that the market may begin to take into account the risk of a Fed rate hike before the end of next year, thereby weakening the appeal of longer-term US bonds and pushing the spread between them to the widest level since 2021.

Kevin Zhao of UBS Asset Management plans to take advantage of the sharp rise in 10-year US Treasury bonds next year, and believes that the dovish Federal Reserve and US President Trump's efforts to stimulate growth before the midterm elections will once again intensify inflation. Zhao, head of the actively managed sovereign, fixed income and exchange fund at UBS Asset Management, said that the market may begin to take into account the risk of a Fed rate hike before the end of next year, thereby weakening the appeal of longer-term US bonds and pushing the spread between them to the widest level since 2021.