Amundi lowers its outlook on US Treasury duration exposure, citing resilient economic growth
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“The short end of the US Treasury yield curve is overvalued, while the long end is facing fiscal risks,” wrote Amaury D’Orsay, Head of Fixed Income at Europe’s largest asset management company, in a report. He added that he currently prefers inflation-linked bonds. “The Federal Reserve is currently in a wait-and-see mode. Looking ahead, we expect it to keep rates unchanged for a longer period,” said Monica Defend, Head of Amundi Institute, stating that the Federal Reserve will not resume rate cuts before the second quarter of 2027.
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