A $361 Billion Fund Is Buying Treasuries on Bets Yields Peaking
- U.S. govt bonds rise to 12% from 0% of $26 billion strategy
- Treasuries are now ‘closer to fair value,’ M&G’s Chartres said
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M&G Investments is building up its war chest of U.S. Treasuries on wagers that yields in the world’s most liquid bonds are likely near their peak.
The London-based money manager now has 12 percent of its $26 billion Optimal Income Strategy portfolio in U.S. government debt, up from zero a year ago, investment director Pierre Chartres said. The fund holds mostly three to 10-year notes, he said.