Shorter Is Better to Bond Traders Seeking Shelter

Newsletter Markets Daily Contact us:Provide news feedback or report an error Confidential tip?Send a tip to our reporters Site feedback:Take our Survey By Lynn Thomasson August 19, 2026 at 10:10 AM UTC This article is for subscribers only . It might be the most consensus trade in markets right now — the appeal of the short-dated bond. It’s a safe-haven play as worries about high oil prices, government debt burdens and the flood of AI borrowing rattle global markets. An index of bonds with a maturity of one to three years has gained 1% this year, versus a loss of 4% for bonds of 10 years and more. Since war broke out in the Middle East, BlackRock‘s James Turner in London has shifted toward shorter maturities and inflation-linked bonds, while Aviva Investors, Aegon Asset Management and Allspring Global Investments are favoring shorter-dated corporate credit. “The short end of the government bond curve is probably the safest place I can put my money when I want to not worry,” said Vera Fehling, Europe chief investment officer at DWS. — Georgia Hall and George Nixon