Schroders Plc Increases US Treasury Holdings Amid Yield Fluctuations

Schroders Plc, a UK-based asset manager managing approximately $1 trillion in assets, has recently increased its holdings in long-term US Treasuries, believing that yields are nearing their peak. This decision comes after a significant selloff in the bond market, which has left many investors facing losses. Schroders views the current situation as a buying opportunity, betting that the worst of the bond market turmoil has passed.

Throughout 2026, Schroders has navigated a volatile fixed-income landscape, making multiple adjustments to its bond exposures in response to inflation concerns, geopolitical tensions, and changing expectations from the Federal Reserve. Earlier in the year, the firm added to its government bond holdings when US Treasury yields surged above 4.5% in April due to escalating global conflicts. However, by June, Schroders had reduced its exposure to US Treasuries and German Bunds, opting instead for Italian government debt, which it found to be more attractively valued amid fiscal uncertainties in the US and Germany.

As of July, the Hartford Schroders Core Fixed Income Fund held about 16% of its portfolio in US Treasuries. The firm has cited improved valuations for US government bonds, driven by elevated real yields, as a key factor in its recent investment strategy. This shift in outlook also aligns with a favorable perspective on gold, indicating a broader strategy in the fixed-income market that reflects tactical trading rather than a permanent allocation change.

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Source: KLEA News