Schroders, which manages $1.1 trillion, increased short positions in US five- and 10-year Treasuries while buying front-end government bonds in Australia, the UK and the eurozone.
The shift followed the Fed meeting, which reinforced Schroders’ view that US policymakers may still need to tighten further because inflation risks remain hard to contain.
That stance favors a trade in which front-end yields fall in those overseas markets even as pressure builds on Treasuries.
The move reflects a broader turn among some global bond investors toward Australia and Europe as confidence in the Fed’s inflation-fighting credibility weakens.