Vanguard's Strategic Shift: Embracing Long-Term US Treasuries Amidst Bond Investor Woes

Vanguard, the second-largest asset manager in the world, is optimistic about long-term US Treasuries after a challenging summer for bond investors. They believe that the Federal Reserve has reached the end of its rate hiking cycle and that the economy will slow down next year, making long-term bonds attractive. Vanguard expects an economic recession and a potential cut in borrowing costs, which would push down prices of shorter-dated Treasuries and increase the appeal of longer-dated bonds. They also view high-quality corporates as an attractive option in the credit market.