Bond Managers Pile Into 5-Year Treasuries for Kevin Warsh Era
Updated
Updated · Bloomberg · Jun 28
Bond Managers Pile Into 5-Year Treasuries for Kevin Warsh Era
2 articles · Updated · Bloomberg · Jun 28
Summary
Five-year Treasuries have become the preferred trade for major bond managers positioning for the early Kevin Warsh era, with firms including Pimco, Capital Group, Insight Investment and Natixis targeting the curve’s “belly.”
That part of the market is being treated as the sweet spot for riding out the next phase of policy and rate uncertainty, rather than taking bigger bets at the short or long ends of the Treasury curve.
The coordinated move by several heavyweight investors signals a broad conviction that the 5-year sector offers the best balance of yield and protection as markets adjust to Warsh’s arrival.