Neuberger Berman's Jonsson: Why we're still shorting German bunds

Neuberger Berman's Jon Jonsson (pictured), senior portfolio manager of the $155m Global Bond Absolute Return fund explains why he has not reduced his short position in German bunds despite the recent sell-off.

While the yields on German government bonds have backed up significantly since the lows in April, a trade we were positioned for and strongly profited from, I do not think the pressure on the bund is at an end. We continue to be short bunds and we have not reduced our position despite the recent sell-off. It is very difficult to make short-term calls in this market - as price action has been dominated by technicals, momentum and dislocations created by central banks. However, I remain confident bund valuations are massively overpriced and I am looking to exploit this against less disl...