Betting heavily that the Fed "can't hike further," asset management giant Amundi is gradually buying US Treasuries

Odaily News: As international oil prices break through $100 and global bond markets tumble, Europe's largest asset manager is adding to 2-year US Treasuries against the tide. Some investors worry that the Fed is once again "behind the curve" in fighting inflation, but the situation may soon undergo a qualitative shift.

Amundi SA, the European asset management giant with $2.8 trillion in assets under management, is decisively adjusting course and beginning to gradually buy 2-year US Treasuries to hedge against the systemic risk that the US economy may stall under the impact of high oil prices. While the market is in panic over monetary tightening, Amundi sees a window for contrarian positioning. Nicolas Dahan, the firm's senior portfolio manager for global bonds and currencies, noted that although the US economy is currently showing some resilience, persistently high energy prices and surging borrowing costs are becoming growth risks that cannot be ignored.