In Jingshun and Kamniak are shorting US Treasury bonds, taking a bearish view on the Fed's interest rate cuts.

Portfolio managers at Invesco and Carmignac are currently playing a game of shorting US Treasury bonds, as they believe the resilience of the American economy may lead to a disappointment in interest rate cuts. They point out that the stronger-than-expected job growth in January, the significant corporate investments in artificial intelligence, and the cautious stance of Federal Reserve policymakers towards rate cuts all indicate that the economy is too robust to warrant a significant easing by the Fed. While some investors still expect rate cuts, other institutions, including French bank BNP Paribas, are skeptical and warn that if rate cuts fail to materialize as expected, US bond prices could face a sharp decline.