Institutional Analysis: Turning cautious on US bonds, Trump policies will help drive inflation

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On February 26, Golden Ten Data reported that Nicolas Jullien, Global Head of Fixed Income at asset management company Candriam, stated that although Candriam maintains a neutral rating on US Treasuries, its view on US bonds has become more cautious. The recent significant pump in bond prices has led to a decrease in yields. Candriam believes that although it has not reached a rating of reducing holdings, the outlook for US bonds is negative in most aspects. The recent drop in oil prices has caused yields to fall, but due to Trump's policies, the inflation rate still has the potential to rise. "The market has priced in the inflation effects of US policies, but this is (temporarily) overshadowed by cheaper energy."

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