Fixed-income investors are increasingly favoring short-duration bond funds as the prospect of higher interest rates for longer gains traction.
The shift comes as global bond markets face renewed selling pressure, driven by persistent inflation concerns that have unsettled the long-held perception of Treasuries as a safe haven.
US Treasury yields climbed sharply on Monday, marking a significant repricing of risk across the fixed-income complex.
This volatility has prompted portfolio managers to reassess their exposure, moving away from longer-dated securities that are more sensitive to rate fluctuations.
The selloff reflects a broader market anxiety that central banks may need to maintain restrictive policies for an extended period to tame sticky inflation.
The pressure is not confined to developed markets.