Allspring, BlueBay Challenge Rate-Hike Bets With Short-End Trade

Allspring and BlueBay are positioning investment portfolios in short-dated European and UK bonds based on the view that market expectations for interest rate increases are overextended. The trade involves holding bonds with shorter maturities, which typically perform better when interest rate forecasts decline. Both firms are currently holding these positions in response to current market pricing of future rate decisions by central banks.

Next story