1 Apr 2025: Invest in US Treasury note, T 4.250% 31May2025 Govt

Investment Idea: US Treasury Note, T 4.250% 31May2025 (USD)

Ask Yield: 4.08%

Ask Price: 100.02

Issuer: United States Treasury

Coupon: 4.25%

ISIN: US91282CHD65

Issuer Credit Rating: AA+ (S&P / Fitch), Aaa (Moody's)

Bond Credit Rating: AA+ (Fitch), Aaa (Moody's)

Outstanding Issue Size: USD 49.8 Billion

Fitch Ratings recent remarks on Issuer (7 Jan 2025): "The US faces significant fiscal policy challenges in 2025 relating to the debt limit, appropriations, and tax cuts in the context of already large deficits and an increasing debt burden. We believe it is unlikely that these will be resolved expeditiously because of long-standing weaknesses in the federal government’s budgetary process and a narrow Republican House majority." 

Why Invest?

1. Weak economic growth

2. US Liberation Day unlikely to change weakened market sentiment on tariffs

3. US Federal Reserve to continue cutting interest rates