[Europe's Largest Asset Manager Starts Buying 2-Year U.S. Treasuries, Betting High Oil Prices May Drag Down U.S. Economy] BlockBeats News, September 14, Europe's largest asset management company, Amundi, is gradually purchasing 2-year U.S. Treasuries and unwinding its previous short positions on U.S. short-term interest rates. The firm, which manages approximately $2.8 trillion in assets, has portfolio manager Nicolas Dahan stating that rising oil prices and surging financing costs are increasing the risk of a U.S. economic slowdown. Recently, global bond markets have faced sell-offs, with the 2-year U.S. Treasury yield briefly surpassing 4.50%, and the 10-year yield jumping 19 basis points last week, remaining close to the 5% threshold as of this Monday. Meanwhile, Brent crude oil has exceeded $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 when the 2-year U.S. Treasury yield rises above 4.50%, its appeal as a safe-haven asset becomes significantly more attractive. As core bond yields in developed economies reach more appealing levels, Amundi is gradually reallocating into bonds from mature markets such as the U.S., Europe, and the U.K., while extending the duration of its investment portfolio. Dahan believes that oil supply shocks, the market's aggressive pricing of central bank tightening paths, and the recent "capitulation-style sell-off" in the bond market could all serve as catalysts for a market shift. His assessment is that as economic pressures mount, major central banks may not be far from a policy pivot. [Original Link]