Head of Global Fixed Income Research, HSBC: U.S. longer-maturity Treasuries are likely to have higher returns than Treasury bills

Steven Major, head of global fixed income research at HSBC Holdings, which is known for its bullish bonds, believes that with major central banks (in Europe and the United States) signaling the end of interest rate hikes, longer-maturity US Treasuries may provide higher returns than US Treasury bills in the coming years. Forward trading on 10-year and 12-month U.S. Treasury bills both showed that the market was expecting yields to fall sharply, while longer-dated Treasuries yielded more than shorter-dated Treasuries within a year. "Given that this has been rare lately, for those who prefer to operate Reverse, this is more in favor of the 10-year Treasury note than the 12-month Treasuries," Major said.