Analyst Selig of Bank of America said in a report that the 50 basis point rate cut by the Federal Reserve is favorable for investment-grade credit. He mentioned that the demand for long-term bonds has been strong because the market expects an upcoming rate cut cycle by the Federal Reserve. The Federal Reserve has just confirmed that a relatively quick rate cut cycle is imminent. Selig added that a significant rate cut should help alleviate concerns about US economic growth. He stated that finally, due to rising yields and reduced forex hedging costs for foreign investors, the steepening of the US Treasury yield curve in put has supported demand.