Doubts Over Fed's Inflation Control Fuel Shift Away from Treasuries

Global bond investors are reassessing their portfolios due to growing doubts about the Federal Reserve's ability to control inflation. As a result, some investors are turning to markets like Australia and Europe as an alternative to US Treasuries.

Schroders Plc, which oversees $1.1 trillion in assets, is increasing its bearish positions on US Treasury yields by buying front-end government bonds in Australia, the UK, and the eurozone. The fund believes that front-end yields in these markets will fall.

The move reflects concerns about the Fed's tightening measures, which may need to be further increased to control inflation. This has added pressure on Treasuries, making them a less attractive investment option for some investors.