Schroders Plc, the UK-based asset manager overseeing roughly $1 trillion, has been buying long-term US Treasuries on the thesis that yields are close to their ceiling. It’s a contrarian move after a bruising selloff that left plenty of bond investors nursing losses, but Schroders apparently sees the pain as a buying opportunity.
A year of whiplash in bond markets
This isn’t Schroders’ first rodeo in 2026’s turbulent fixed-income landscape. The firm has adjusted its bond exposures multiple times this year as inflation fears, geopolitical tensions, and shifting Federal Reserve expectations created a volatile cocktail for government debt.
Back in April, when yields spiked to multi-year highs amid escalating geopolitical conflicts, Schroders added to its government bond holdings alongside other large funds. US Treasury yields surged above 4.5% in April 2026 due to these geopolitical tensions.
By June, however, the firm’s positioning told a different story. Schroders actually trimmed its US Treasury and German Bund exposure while increasing its allocation to Italian government debt. The reasoning centered on fiscal policy uncertainties in the US and Germany, paired with relatively more attractive valuations in Italian bonds.
