The $35 billion fixed-income manager is betting that European government debt offers a better risk-reward profile than US securities under the current Fed regime. Wellington Asset Management reduced its US Treasury holdings and rotated into German bonds and other European government debt following the Federal Reserve’s July 29 FOMC meeting. AdvertisementHarvey, who oversees approximately $35 billion in total assets across Wellington’s fixed-income book, trimmed Treasury exposure and went overweight on European bonds, with a particular emphasis on German government debt. The yield differential between US and German government bonds has historically favored Treasuries, offering higher nominal returns in exchange for holding dollar-denominated debt. The bigger picture for bond marketsThe three dissenting votes at the July meeting underscore inflation anxiety within the Fed itself.