Amundi Purchases 2-Year U.S. Treasuries Amid Rising Oil Prices and Economic Concerns

According to Huoxing Finance, on September 14, Amundi, Europe’s largest asset manager, is gradually purchasing two-year U.S. Treasuries and beginning to unwind its previous short positions on U.S. short-term interest rates. The firm manages approximately $2.8 trillion in assets, and its portfolio manager, Nicolas Dahan, believes that rising oil prices and surging financing costs are increasing the risk of an economic slowdown in the United States. Recently, global bond markets have faced heavy selling pressure: the yield on two-year U.S. Treasuries briefly surpassed 4.50%, while the 10-year yield rose 19 basis points last week and remains near the 5% mark this Monday. Meanwhile, Brent crude has broken through $100 per barrel, and the European Central Bank’s rate hikes have pushed Germany’s 10-year government bond yield to its highest level since 2009. Dahan noted that once the two-year U.S. Treasury yield rose above 4.50%, its appeal as a safe-haven asset became significantly more pronounced. As core bond yields in developed economies reach more attractive levels, Amundi is gradually rebalancing its portfolio toward bonds in mature markets such as the U.S., Europe, and the U.K., while extending the duration of its holdings. Dahan believes that oil supply shocks, aggressive market pricing of central bank tightening, and recent “capitulation-style” bond market selling could all serve as catalysts for a market reversal. He anticipates that, as economic pressures mount, major central banks may be nearing a policy turning point.