Hasenstab's Huge Bet Against Treasuries Is Getting Wiped Out

Few prominent investors have been punished harder for being on the wrong side of plummeting bond yields than Franklin Templeton’s Michael Hasenstab, who manages funds with total assets of about $115 billion, including the Templeton Global Bond Fund.

The flip side of falling yields and interest rates has been a rally in the bond markets. As yields drop, bond prices rise, and in recent months, owning U.S. Treasuries have been an easy way to make money. So it’s been a tough time to hold the view that the long era of low rates—which began with the financial crisis over a decade ago—is about to reverse.