Portfolio Managers Short US Treasuries Despite Rally
Portfolio managers at Invesco, Carmignac and BNP Paribas are betting against US Treasuries in early 2026 as yields rally to near-month lows following safe-haven demand and a tame January inflation print. They cite strong January job growth, rising corporate investment in AI and cautious Fed minutes as evidence the economy remains resilient. As a result, several firms expect fewer rate cuts and are underweighting Treasuries, targeting higher yields.
Key Points
- 1Short positions in US Treasuries by Invesco, Carmignac, and BNP Paribas amid rally and low yields.
- 2Cite US economic resilience—strong January jobs and AI-driven corporate investment—reducing need for additional Fed cuts.
- 3Position portfolios underweight Treasuries; prepare for 10-year yields to drift toward 4.5% in coming months.
Scoring Rationale
Well-sourced fund-manager and Fed-minute evidence gives actionable market insight; limited novelty and sector focus reduce impact.
Sources
Public references used for this report.
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