Wellington Asset Management, a $35 billion asset manager, has reduced its exposure to US Treasuries and invested in German Bunds. This strategic shift follows the Fed’s July 29 meeting, where policymakers held the federal funds rate steady at 3.50% to 3.75%, despite core inflation remaining above the 2% target. Martin Harvey, portfolio manager of the $6 billion World Bond Fund, orchestrated the pivot. The move signals a vote of no confidence in the Federal Reserve’s ability to bring inflation back to target.
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