Bond investors are revising their strategies as they foresee a U.S. Economic downturn. Many are increasing their long-duration investments, betting on a potential drop in interest rates, with forecasts indicating a 62 basis point cut this year.

The J.P. Morgan Treasury Client Survey highlights investors holding their largest net-long position in Treasuries since 2010, reflecting ongoing recession fears due to shifting economic policies under the Trump administration. Analysts suggest long positions in international markets may also present opportunities.