Mullins, Head of Multi-Asset for Australia at Schroders, has indicated that despite a recent string of positive data, signs of weakness are emerging in the US economy.
He is buying Australian and European bonds while looking for an entry point to purchase longer-term US Treasuries.
Mullins is not alone in predicting a looming economic slowdown in the United States. Recent movements in the US Treasury market have also confirmed this view.
The yield on 30-year Treasury bonds surged by around 40 basis points to around 4.40% in August, marking the highest level since October.
Strong economic data, substantial US Treasury supply, and Moody’s downgrade of the US credit rating have intensified upward pressure.
Mullins believes that, given the current scenario and the possibility of an economic recession, there might be an inclination to invest in longer-term US Treasuries within portfolios.
