Goldman Sachs' Chief Strategy Officer is optimistic about five-year US Treasury bonds and expects the Federal Reserve to cut interest rates by 25 basis points in September Josh Schiffrin, Chief Strategy Officer of Goldman Sachs Global Banking and Markets, said that five-year Treasury bonds are his "favorite trade" in the context of the Fed's almost certain interest rate cut in September. He pointed out that the five-year treasury bond with the current yield between 3% and 4% are not only attractive in valuation, but also have the characteristics of providing protection when the risk market weakens. As of August 19th, the yield on five-year US Treasury bonds was 3.85%, a significant decrease from the beginning of the year, reflecting market expectations for loose policies. Shiflin predicts that the Federal Reserve will cut interest rates by 25 basis points at next month's meeting and may initiate a loose cycle that will continue until 2026.