Hasenstab Says Treasuries Are Bubble Set to Burst as Yields Rise
- Templeton star fund manager has been bearish since 2015
- Bonds sink as Trump appears to retreat from shutdown fight
Franklin Templeton star bond-fund manager Michael Hasenstab discusses the outlook for Treasuries and his investment strategy with Bloomberg's Alix Steel, Jonathan Ferro and David Westin on 'Bloomberg Daybreak: Americas.' (Source: Bloomberg)
Franklin Templeton star bond-fund manager Michael Hasenstab called U.S. Treasuries one of the world’s biggest financial bubbles, saying investors seeking safety in the securities face the prospect of significant losses as yields rise.
Treasuries fell for a fifth day Tuesday as yields climbed above 2.30 percent, testing a key support level. Hasenstab, who manages the $40 billion Templeton Global Bond Fund, cited a variety of factors behind his bearish wager, from higher consumer prices brought on by a hot U.S. job market, to a Federal Reserve he sees as behind the curve, to the retreat of foreign buyers. It’s a major trade he’s held onto since at least 2015, even as yields tumbled to record lows last year.