UBS Asset Management’s Kevin Zhao plans to short US Treasuries

Zhao argues stronger U.S. growth than Europe weakens the traditional safe-haven case for government bonds, pointing to a more bearish view on Treasuries.

Summary

UBS Asset Management’s Kevin Zhao said he plans to short U.S. Treasuries, reflecting a bearish stance on government bonds. Zhao’s view is based on the argument that strong U.S. growth relative to Europe undermines Treasuries’ safe-haven appeal, a role investors typically turn to during periods of economic or market stress.

Terms & Concepts
  • short: Betting an asset’s price will fall.
  • US Treasuries: U.S. government bonds issued to fund federal spending.
  • safe-haven: Asset investors buy during uncertainty.