Amundi buys two-year US Treasuries to hedge against the risk of slowing economic growth.

Europe's largest asset manager, Amundi SA, is seeking opportunities in the recently sold-off global bond market and buying two-year U.S. Treasuries to hedge against the risk of slowing economic growth caused by high oil prices. As traders ramped up bets on Federal Reserve rate hikes, the yield on two-year U.S. Treasuries rose above 4.50% last week for the first time since 2024. However, Nicolas Dahan, senior portfolio manager for global bonds and foreign exchange at the Paris-based company, which manages $2.8 trillion in assets, said rising bond yields and energy prices could pose risks to the U.S. economy, which has so far shown resilience. If an economic slowdown forces the Fed to reconsider its tightening path, the yield on two-year Treasuries, which is most sensitive to interest rate changes, could decline.