Australian fund reduces holdings of US treasuries due to concerns about Trump policy risks.

Some of Australia's largest investors have stated that they are reducing their holdings of US Treasury bonds out of concerns over President Donald Trump's tariffs and tax plans. The state-owned Funds SA, managing assets worth about $300 billion, has shifted towards reducing its holdings of US sovereign debt, while the Queensland Investment Corporation, managing assets worth $860 billion and government-operated, has said that some of its clients are reducing their exposure to US Treasury bonds. Funds SA's chief investment officer, Con Michalakis, stated that the uncertainty in US fiscal policy and the low yields on government bonds do not adequately reflect the risks of holding these securities, which has caused their attractiveness to decrease. He mentioned that their current allocation to US Treasury bonds is a few percentage points lower than their target allocation.