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Treasuries lose appeal as portfolio hedge amid inflation pressures, Citi warns

Reported · Written up by our desk · Equity Funds

US Treasuries are becoming less effective as a portfolio hedge as persistent inflation, rising bond supply and higher interest rates undermine their traditional defensive role, prompting investors to consider alternatives including hedge funds and commodities, according to a report by Bloomberg. Mark Woodruff, chief executive officer of Citigroup Australia, said the current macroeconomic environment has weakened the appeal of US government bonds as protection against equity market volatility. While 10-year Treasury yields near 5% would historically have offered an attractive hedge against equi

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