Amundi SA, which manages €2,58 trillion in assets, is increasing its holdings of two-year US Treasury bonds. The firm is using these short-dated securities as a defensive strategy against potential global economic slowdowns caused by rising oil prices.
The decision follows a bond market selloff in early September, triggered by oil prices reaching a four-month high due to geopolitical tensions in the Middle East. Amundi’s Group CIO Vincent Mortier had previously noted the firm's interest in one- to two-year maturities in April.
By focusing on short-term bonds, the company aims to minimize interest-rate risk while positioning itself for potential central bank rate cuts. This strategy assumes that economic deceleration will outweigh inflationary pressures from energy costs.
Amundi reports significant net inflows into its fixed-income strategies during this period of market volatility. This trend indicates that other institutional investors are adopting a similar cautious stance regarding the current economic outlook.
