In spite of reduced expectations for US interest rate cuts and rising US Treasury yields, investors should consider government bonds one of their best bets for 2001, according to analysts at Merrill Lynch.
Kenneth Hackel, chief US fixed-income strategist, sees value in different types of bonds depending on which part of the yield curve is being traded. "In the US, investors should use US Treasuries to satisfy needs for long duration assets and focus exposure to spread products on the shorter end of the curve," he said.
