2 Apr 2025: Invest in US Treasury Note, T 2.875% 15Jun2025 Govt at 4.2%

Investment Idea: US Treasury Note, T 2.875% 15Jun2025 (USD)

Ask Yield: 4.15%

Ask Price: 99.74

Issuer: United States Treasury

Coupon: 2.875%

ISIN: US91282CEU18

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

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

Outstanding Issue Size: USD 46.5 Billion

On 25 March 2025, Moody’s Investor Service warned that the United States is in fiscal deterioration, stating that government policy decisions in the near term could contribute to higher interest rates and worsening debt for the United States. According to the rating agency, the potential negative credit impact of sustained high tariffs, unfunded tax cuts and significant tail risks to the economy have diminished prospects that these formidable strengths will continue to offset widening fiscal deficits and declining debt affordability.

Why Invest in US Treasury bonds?

1. Weak US economic growth, talk of a recession has surfaced

2. US to implement tariffs on trading partners

3. US monetary policy will remain accommodative, in support of bond prices