Long-dated bonds price pushed up by pensions

The increase in pension funds investing in government bonds is expected to push up the price of long...

The increase in pension funds investing in government bonds is expected to push up the price of long-dated bonds in the UK, Europe and US, and managers have been repositioning portfolios in anticipation of this. The Schroders Global Bond fund is overweight on the long end and underweight on the short end for the UK, US and European markets. David Scammell, director of fixed income at the firm, says he is favouring the UK because interest rates, currently set at 4.5%, are expected to reduce this year. "The Bank of England has undergone its period of tightening and, as consumer spending ...