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Treasuries Losing Luster as Hedge Tool, Citi Australia CEO Says

Bloomberg Markets Tuesday 20 October 2026, 00:34 UTC By Haidi Lun and Richard Henderson 1 min read
Key Points

Treasuries Losing Luster as Hedge Tool, Citi Australia CEO Says Treasuries are losing their luster as a portfolio hedge as increasing supply, persistent inflation and rising neutral rates weaken their appeal, according to Citigroup Inc.’s top Australia banker. US 10-year government bonds trading at a 5% yield would typically form an ideal counterweight to an equity allocation, but the current market backdrop of rising consumer prices and interest rates has weakened demand, said Mark...

Treasuries Losing Luster as Hedge Tool, Citi Australia CEO Says Treasuries are losing their luster as a portfolio hedge as increasing supply, persistent inflation and rising neutral rates weaken their appeal, according to Citigroup Inc.’s top Australia banker. US 10-year government bonds trading at a 5% yield would typically form an ideal counterweight to an equity allocation, but the current market backdrop of rising consumer prices and interest rates has weakened demand, said Mark Woodruff, chief executive officer of Citigroup Australia.
Citi Australia (ORG) Citigroup Inc.’s (ORG) Australia (LOCATION) US (LOCATION) Mark Woodruff (PERSON) Citigroup Australia (ORG)
Originally published by Bloomberg Markets Read original →

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