AMUNDI SA, which manages approximately €2.58 trillion in assets, is actively acquiring two-year U.S. Treasuries as a hedge against oil-driven economic deceleration.
The strategy reflects a bet that growth headwinds will dominate over inflation concerns. Oil prices surged to four-month highs in early September, driven by Middle East tensions, triggering a sharp bond selloff as two-year yields spiked. Amundi views the spike as an entry point.
Rising oil prices function as a tax on consumers and businesses, eroding spending power and compressing profit margins. If economic drag accelerates, central banks typically cut rates, pushing bond prices higher as yields fall. By concentrating holdings in the two-year segment, Amundi limits duration risk while positioning for the rate cuts expected to follow an economic slowdown.
Vincent Mortier, Amundi's Group Chief Investment Officer, first signaled a preference for one- to two-year bonds in April, noting significant additions to those maturities at that time.
Amundi has experienced net inflows into fixed-income strategies during recent market volatility, suggesting broader institutional alignment with a cautious stance on growth.
