Major US funds bet the ‘anything but bonds’ trade is poised to end
In a strategic move, major US bond investors are redirecting their focus towards long-dated notes, anticipating a surge in value amid potential interest rate cuts. With yields on the rise, top mutual fund managers have noticeably increased their duration, favouring high-grade corporate bonds to evade the negative effects of government debt. As market sentiment shifts, long-duration bonds are emerging as a lucrative investment, hinting at a promising second half for savvy investors.
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By Hannah Benjamin-Cook and Natasha Doff
Big US bond investors have been aggressively shifting money into long-dated notes, betting that the unloved asset class will be one of the winners from eventual interest rate cuts.
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