Treasuries Holdings Cut at Australia’s No. 2 Pension on US Risk

The US Treasury building in Washington, DC.

Photographer: Kent Nishimura/Bloomberg

Australia’s second-biggest pension fund has grown increasingly bearish on US Treasuries due to concerns that Washington’s policies may stoke inflation.

Australian Retirement Trust Pty, which oversees A$330 billion ($216 billion), is underweight US bonds through its dynamic asset allocation strategy, senior portfolio manager Jimmy Louca said in an interview last week.