Treasuries Are a Fidelity Top Bet as Real Yields Soar on Selloff
- Fund bought 30-year US bonds last week as yields advanced
- Rising real yields seen fueling tighter financial conditions
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Fidelity International is snapping up beaten-down US Treasuries and has room for more as investors gear up for a world where interest rates will remain higher for longer.
George Efstathopoulos, who helps manage the $6.6 billion Global Multi Asset Income Fund, bought 30-year Treasuries last week as yields in the world’s biggest bond market skyrocketed to levels last seen in 2011. The fund has the capacity to double its investments in longer-dated US debt from its current allocation of around 3.5%, said the Singapore-based money manager.