Economics
Bloodied, Not Broken: U.S. Bond Market's Biggest Bears Die Hard
- Best start for Treasuries since 2008 can’t last, says Loomis
- 10-year yields at 1.8% “hard to get excited about,” Wamco says
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The biggest bears in the U.S. bond market are standing their ground.
Despite the best start to a year for Treasuries since the credit crisis, Western Asset Management, Loomis Sayles and Franklin Templeton Investments say U.S. government bonds are a losing bet. The firms, which oversee more than $800 billion, contend investors are being driven by irrational fears about China, the commodities collapse and a weakening U.S. economy -- and making the mistake of pouring into Treasuries that yield less than 2 percent.