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Bonds•13 May 2026•

1 min read

Jupiter Asset Management Pivots to European Bonds, Cuts U.S. Treasury Exposure

Key Facts

1Asset manager Jupiter has been buying European government bonds, particularly shorter-dated German debt.

2The firm reduced its exposure to U.S. Treasuries in favor of European debt.

Asset manager Jupiter has been actively purchasing European government bonds, with a specific focus on shorter-dated German debt. According to reports, the firm has strategically reduced its exposure to U.S. Treasuries in favor of European sovereign debt. This pivot is driven by the firm's assessment that market participants have overpriced the potential for further interest rate hikes from both the European Central Bank and the Bank of England.

This institutional shift highlights a divergence in macroeconomic expectations; recent data showed German Factory Orders surged by 5% in March 2026 per market data, significantly outperforming the 1% forecast. Meanwhile, U.S. labor data from May 6, 2026, showed ADP Employment Change at 109k, exceeding the 99k estimate, which maintains pressure on U.S. Treasury yields compared to their European counterparts.

Investors should monitor European yield levels following the German Balance of Trade report, which posted a surplus of 14.3 billion euros as of May 8, 2026. Looking ahead, upcoming communications from ECB officials, including speeches by Lane and Elderson, will be critical catalysts for validating Jupiter's bet on a peak in regional interest rates, especially as Eurozone Retail Sales remained subdued at -0.1% month-on-month.