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DoubleLine’s Sherman Stays Bearish on Long-Term Treasuries
DoubleLine’s Jeff Sherman remains bearish on long-term Treasuries amid heavy government borrowing and weakening demand.
In brief
DoubleLine’s Jeff Sherman remains bearish on long-term Treasuries amid heavy government borrowing and weakening demand. DoubleLine Capital’s Jeff Sherman says heavy government borrowing and weakening demand will keep pressuring long-term Treasuries. Originally reported by mint.
Sherman’s Bearish Stance
DoubleLine Capital’s Jeff Sherman remains bearish on long-term Treasuries, arguing heavy government borrowing and weakening demand will pressure the market.
“We continue to be significantly underweight in most portfolios, if not short the back end of the curve, because ultimately the pressures will materialize.”
Treasuries Rally Amid AI Concerns
Treasuries rallied Thursday as haven demand returned amid concerns about the artificial-intelligence trade and turmoil in the French market.
Sherman Criticizes Bessent
Sherman criticized Treasury Secretary Scott Bessent’s efforts to talk down yields, saying he uses aggressive words like 'I am the house, I have information you don’t.'
“He is using these very aggressive words, like 'I am the house, I have information you don’t,'”
Credit Market Shifts
Sherman started to 'nibble' at tech debt after Meta Platforms and CoreWeave Inc. saw record credit risk and bond declines.
“We started to nibble in the hyperscalers and neoclouds a little bit.”
The main idea
DoubleLine Capital’s Jeff Sherman says heavy government borrowing and weakening demand will keep pressuring long-term Treasuries.
