As the global bond market enters a period of turmoil and sell-off, the demand for short-term bonds as a safe haven is growing.

According to a recent report by investment firm T. Rowe Price Group Inc., shorter-term bonds may be a safe bet to withstand the global bond market turmoil. It is widely expected that long-term (10 years or longer) US Treasury bond yields will continue to rise and corporate default rates will increase. "We are looking for opportunities in investment-grade, high-yield, or securitized short-term bonds," said Saurabh Sud, Senior Portfolio Manager at T. Rowe Price, who manages assets of around $15.6 billion. "While long-term bonds may be sold off, some shorter bonds look attractive, allowing you to achieve high single-digit or double-digit yields without taking on significant credit or duration risk." Global bonds, especially government bonds, have come under pressure again this week, with the yield on US 10-year Treasury bonds briefly rising to 4.31%. This leaves the yield curve only about 3 basis points lower than its temporary peak in October 2021, the highest level since 2007. Long-term US Treasury bonds have been a key force driving the recent wave of bond selling in global bond markets, with the US economy showing incredible strength and the labor market remaining hot, largely dispelling investors' optimism that major central banks such as the Federal Reserve and the European Central Bank would soon stop or reverse their interest rate hike processes. "I expect that we will reach a new cyclical high within the next 10 years," said Saurabh Sud, referring to the US Treasury yield curve. "Therefore, I expect that the peak of around 4.33% in October last year will be completely surpassed." The investment manager emphasized this. Saurabh Sud also favors some shorter-term high-yield bonds. "We find that many high-yield secured bond trades offer yields in the high single digits or even double digits. Even during an economic downturn, we are very willing to underwrite these assets," the investment manager emphasized. Despite the continuous sell-off of long-term US bonds, there are still many investment industry giants who support the idea of buying short-term US Treasury bonds. Bill Ackman, founder of Pershing Square Capital Management, a famous figure in the US investment industry, said he is heavily betting on a drop in prices of 30-year US Treasury bonds and is investing in short-term US bonds. He mentioned that the US Treasury Department's plan to increase bond issuance is a major concern for the market. Ackman said that his asset management firm is using short-term US bonds for cash management operations, similar to the approach of Warren Buffett, who is often referred to as the "Oracle of Omaha." After Moody's downgraded the US sovereign credit rating, Buffett stated that his company Berkshire Hathaway's purchase of short-term US Treasury bonds remains unchanged. Robert Kiyosaki, author of the bestselling personal finance book "Rich Dad Poor Dad," recently stated that Buffett is holding about $147 billion in cash and has invested some of his assets in the short-term US bond market, suggesting that Buffett's behavior of hoarding cash and short-term assets seems to be preparing for a market crash and future buying of assets at low prices. Recently, Elon Musk, the world's richest person, highlighted in a tweet that investing in short-term US Treasury bonds is a "clear, wise move." In terms of ETF data related to short-term US bonds, ETFs that track bonds maturing within a year have absorbed nearly $4 billion as of the end of July, indicating that fund managers continue to flock to the short-term bond market, while the assets of money market funds linger near record levels.