Europe's largest asset management company, Amundi SA, is looking for opportunities in the recently sold global bond market and is buying two-year US Treasury bonds to hedge the risk of economic growth slowing due to high oil prices. As traders increased their bets on the Fed's interest rate hike, US two-year Treasury yields rose above 4.50% last week, for the first time since 2024. However, Nicolas Dahan, senior global bond and foreign exchange portfolio manager at the Paris-based company that manages $2.8 trillion in assets, said that rising bond yields and energy prices may pose a risk to the US economy, which has shown resilience until now. If the economic slowdown forces the Federal Reserve to reconsider its tightening path, then two-year US Treasury yields, which are most sensitive to changes in interest rates, may fall.

Europe's largest asset management company, Amundi SA, is looking for opportunities in the recently sold global bond market and is buying two-year US Treasury bonds to hedge the risk of economic growth slowing due to high oil prices. As traders increased their bets on the Fed's interest rate hike, US two-year Treasury yields rose above 4.50% last week, for the first time since 2024. However, Nicolas Dahan, senior global bond and foreign exchange portfolio manager at the Paris-based company that manages $2.8 trillion in assets, said that rising bond yields and energy prices may pose a risk to the US economy, which has shown resilience until now. If the economic slowdown forces the Federal Reserve to reconsider its tightening path, then two-year US Treasury yields, which are most sensitive to changes in interest rates, may fall.