Jupiter Asset Management cuts US Treasury holdings to zero in favor of European bonds

Jupiter Asset Management has done something that would have looked almost radical a year ago: it zeroed out US Treasury holdings in one of its main bond funds. The £47 billion ($63.5 billion) asset manager swapped that exposure for European government notes and deepened an already significant emerging-markets position instead.

What changed, and why

Portfolio manager Ariel Bezalel has been vocal about two interconnected concerns. First, he thinks the US economy is running too hot for comfort. Second, he believes market pricing of European Central Bank rate hikes has gotten ahead of itself, with traders now pricing in three hikes from the ECB.

Bezalel’s view, in plain terms: three ECB hikes is too aggressive an assumption, which makes shorter-dated European government bonds look attractive on a relative basis. If the ECB hikes less than the market expects, those bond prices hold up better than the consensus trade would suggest.

Jupiter is specifically targeting shorter-dated German government bonds. The firm is also keeping its distance from UK gilts. Bezalel cited both excessive rate-hike pricing baked into UK debt and broader political risk as reasons to stay away.

Follow the flows

Jupiter is not operating in a vacuum here. Lipper data shows that Q2 2026 saw net inflows of $3.05 billion into eurozone government bond funds, compared with just $1.69 billion flowing into US Treasury funds over the same period.

Flip back one quarter and the picture looked completely different. In Q1 2026, US Treasury funds pulled in $4.39 billion against a modest $829 million for eurozone equivalents.

Jupiter itself had previously been leaning hard into Treasuries. The firm built its holdings to record levels in early 2024, suggesting Bezalel was willing to own US debt aggressively when the macro case supported it. The fact that the same manager is now at zero on that position underlines how materially the calculus has shifted in his assessment.

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