HSBC: Investors seeking to reduce their exposure to US Treasuries may consider swapping them for a basket of bonds.

Steven Major, Global Head of Fixed Income Research at HSBC, said that investors looking to reduce exposure to US treasuries could consider investing in a basket of other sovereign bonds. In a report released on Wednesday, he pointed out that if confidence in the US bond market is damaged, UK government bonds could benefit as an alternative safe haven asset. "The stock market's response is that there is no alternative, but if you look closely, perhaps you could consider buying a basket of alternative bonds," he said on Thursday. The Brexit premium in the UK has "diminished", the Bank of England is independent, and recent volatility in the bond market is prompting the UK government to take responsible action.