UBS Asset Manager Plans to Short U.S. Treasuries, Favors German Bonds for Defense

UBS-2.81%
According to Bloomberg, Kevin Zhao, head of global sovereigns and currencies at UBS Asset Management, plans to short U.S. Treasuries, betting strong U.S. economic performance will reduce demand for government bonds as safe-haven assets. Zhao believes the U.S. remains in the most favorable position, unaffected by energy shocks and the primary beneficiary of AI investment trends. Conversely, he views German government bonds as an attractive defensive allocation, as energy impacts will hit European economic growth harder while the region benefits less from AI investments.
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