Europe's largest asset management company, Amundi SA, is looking for opportunities in the recently sold global bond market and is buying two-year US Treasury bonds to hedge the risk of economic growth slowing due to high oil prices. As traders increased their bets on the Fed's interest rate hike, US two-year Treasury yields rose above 4.50% last week, for the first time since 2024. However, Nicolas Dahan, senior global bond and foreign exchange portfolio manager at the Paris-based company that manages $2.8 trillion in assets, said that rising bond yields and energy prices may pose a risk to the US economy, which has shown resilience until now. If the economic slowdown forces the Federal Reserve to reconsider its tightening path, then two-year US Treasury yields, which are most sensitive to changes in interest rates, may fall.

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