Vanguard is optimistic about longer-dated Treasuries, anticipating the Federal Reserve will end raising rates and the economy will decelerate next year.

The world’s second-largest asset manager believes long-term bonds remain attractive despite a “cruel summer” for bond investors.

The Fed’s decision to decrease borrowing costs could lower the price of shorter-term Treasuries, which are more sensitive to interest rates, and increase the attraction of longer-term bonds.

Vanguard believes the Fed is nearing the conclusion of its hiking cycle, making long-term bonds attractive for their high yields and capital appreciation in a recession.