Europe’s largest asset manager, Amundi SA, has started buying 2-year U.S. Treasuries while global bond markets are falling and oil prices have moved above $100, according to a Bloomberg-cited report carried by Odaily. The firm, which oversees $2.8 trillion in assets, is using the position as a hedge against the risk that the U.S. economy could stall under the combined pressure of elevated energy costs and rising borrowing costs. Some investors remain concerned that the Federal Reserve could again fall behind the curve in its inflation fight, but Amundi sees room for a contrarian trade as markets react nervously to tighter monetary conditions. Nicolas Dahan, the firm’s senior portfolio manager for global bonds and foreign exchange, said the U.S. economy has shown some resilience so far, yet persistently high energy prices and sharply higher financing costs are becoming a material threat to growth. The report frames the move as a deliberate shift in positioning rather than a broad risk-on call.
Amundi SA, Europe’s largest asset manager, has started adding 2-year U.S. Treasuries as oil prices climb above $100 and global bond markets come under pressure, according to a Bloomberg-cited report published by Odaily.
Some investors are worried that the Federal Reserve could once again fall behind the curve in its fight against inflation. Even so, market conditions may be close to a turn. Amundi, which manages $2.8 trillion in assets, has begun gradually buying 2-year Treasuries to hedge against the systemic risk that the U.S. economy could slip into stagnation under the weight of higher oil prices.
The firm sees a contrarian opening while markets remain rattled by tighter monetary conditions. Nicolas Dahan, senior portfolio manager for global bonds and foreign exchange at Amundi, said the U.S. economy is still showing a degree of resilience, but energy prices staying elevated and borrowing costs rising sharply are becoming growth risks that can no longer be ignored.
The report cited Bloomberg as the source.
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