Institutional Investors Shift Focus Away from U.S. Bonds and Dollar

According to Odaily, State Street Global Markets strategist Marija Veitmane has highlighted a notable trend among institutional investors in June. They have increased their risk exposure in portfolios while significantly reducing holdings in U.S. Treasury bonds and dollar assets. This shift is particularly striking as their positions in these assets are at their lowest levels in years. Veitmane noted that investors continue to question the traditional safe-haven status of these assets. Despite events such as the U.S. stock sell-off in the first quarter, growing fiscal sustainability concerns in the second quarter, and the recent outbreak of conflict in the Middle East, there has been no surge in market demand for the dollar or U.S. Treasuries. This trend of selling U.S. bonds contrasts sharply with the increased holdings in Japanese and European bonds.